2006-08-04 21:58:40 · 7 answers · asked by Led Z 2 in Business & Finance ➔ Renting & Real Estate
in the United States.
2006-08-04 22:03:21 · update #1
Yes, mortgage rates are going to rise some more. It's a supply and demand situation. The supply of money is shrinking (people are putting fewer dollars into mortgage priming investments) and the demand is sslowly increasing. Price (interest rates) go up.
Competing for the dollars are the federal government and industry. If industry is willing to pay 9% for the money, why should they loan to you for seven? Similarly, the bureaucrats at the Department of the Treasury have been told to get this money to run the government. They are not sensitive to price.
We're also starting to see some signs that foreign investors who have been propping up the dollar are starting to look elsewhere. If they stop buying so many Treasury Bonds, look for rates to really go up.
If you've got a mortgage that's going to adjust in the next 2-3 years (or is variable now), refinance it now to something fixed for at least five years. I've been saying this for a year and a half now, and it's been good advce the whole time.
2006-08-05 05:33:13 · answer #1 · answered by Searchlight Crusade 5 · 2⤊ 1⤋
Interest rates may or may not go up, the market is extremely volatlie now, due to current events in the middle east. They had predicted that rates were on the rise, however any time there is a threat of war, or an actual war, they drastically go down, they have to, do to the economy and other major factors, when rates go up, it is to protect the economy and due to inflation.
2006-08-05 05:09:03 · answer #2 · answered by You are loved 5 · 0⤊ 0⤋
As the election draws near, interest rates will stabilized, and may in fact drop a bit.
Anything under 6.50% is good fixed rate.
I believe the 4% interest days are over.
Stay away from any arm (adjustable rate mortgage) under a 5 year term.
2006-08-05 11:41:22 · answer #3 · answered by Nick R 3 · 0⤊ 0⤋
The federal funds rate is determined by the Federal Reserve Board Chairman, Ben Bernanke. It's already gone up 17 times in a row. Will he raise it again? Hopefully not.
If he does raise it, you can expect every other interest rate to go up as well.
2006-08-05 05:15:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
In Maine the interest rate seams to be going down some. However people are still buying everything, as we are on some of the biggest lakes in Maine. I do not see the real estate market slowing down any time soon.
2006-08-05 05:53:39 · answer #5 · answered by sue.strout 2 · 0⤊ 0⤋
It did already two days ago here in Australia
2006-08-05 05:02:43 · answer #6 · answered by caz_v8 4 · 0⤊ 0⤋
a smidge
2006-08-05 13:00:07 · answer #7 · answered by unclejesse1 3 · 0⤊ 0⤋