2006-08-19 11:23:06 · 10 answers · asked by Blendin 1 in Business & Finance ➔ Personal Finance
It's not possible to predict what it will be in the next few months, let alone 10 years from now. I'll speculate and say somewhere between 3% and 25%.
2006-08-19 11:29:46 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
That's difficult to predict.
One thing seems certain.
They seemed to have "over built" new homes recently, and with the costs going up relating to energy, many people are staying in cramped living quarters to save.
If this trend continues, the glut of over built homes will create a bad economic environment and that could change the trend that seems to prevail for the longest time now.
What could happen is that new homes will be drastically reduced in price.
If this happens within a year or so, then the entire economy may head south, and interest rates will have nowhere to go but lower.
Houses built to sell from three hundred thousand dollars and upwards can't get enough qualified buyers who earn enough to pay on big mortgages.
Most people on YA must earn anywhere from thirty to fifty thousand dollars a year, and that doesn't pay off a big mortgage.
My best guess is that mortgage rates will be around 3% ten years from now.
2006-08-19 11:49:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There is no way of predicting what interest rates will be in 10 years time. For example, in August 2001, experts were predicting an increase in interest rates - then September 11th changed all that.
In the next 10 years, there could be a major geological disaster, terrorist event, or economic disaster (e.g. a sudden collapse in the value of the pound). All of which could cause a sudden decrease or increase in interest rates. We could also have a change of government and different economic policies etc.
If you're deciding whether to have a fixed or variable rate, you cannot listen to anyone who says "well, it basically depends on what you think is going to happen to interest rates" as no-one does. All you need to think about is whether you could afford your mortgage if interest rates increased - if you can't, then a fixed rate is your ONLY option. You cannot gamble the roof over your head on what you think is going to happen to interest rates if an increase is going to force you out onto the street.
2006-08-19 21:31:09 · answer #3 · answered by nemesis 5 · 0⤊ 0⤋
Ignore anyone who seriously answers that with a figure.
If you have ever been involved with forecasting, you will know that almost every forecast will be wrong. The degree of inaccuracy increases with time.
Over a year, if you have an idea as to how all the drivers of the thing you are going to forecast will move, you should be able to achieve i relatively high degree of accuracy. Over three years, you might have a reasonable idea, but other variables will creep in that you had not even thought about.
Over 10 years, forget it.
2006-08-19 11:36:00 · answer #4 · answered by Peakey 3 · 0⤊ 0⤋
hmmm well they won't go DOWN that's for sure. Now we are all mortgaged to the hilt they can turn the screw any time they want.
I seem to remember in the '70s we had like 12 and 15% at one time.
DON'T GET IN TOO DEEP
2006-08-19 11:34:39 · answer #5 · answered by Not Ecky Boy 6 · 0⤊ 0⤋
Cant predict at the moment as you never know about the economy read some mortgage and loan tips and articles on this site
2006-08-19 11:28:10 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Interest rates are still historically low, so the only way they can go is up.
2006-08-21 08:47:30 · answer #7 · answered by CeeVee 3 · 0⤊ 0⤋
10% gased on the way things are going
2006-08-19 11:29:22 · answer #8 · answered by Elaine F 5 · 0⤊ 0⤋
exorbitant and unfair as always
2006-08-19 11:31:38 · answer #9 · answered by uplate 5 · 0⤊ 0⤋
its just not predictable.
2006-08-19 23:26:18 · answer #10 · answered by MSMORTGAGE 3 · 0⤊ 0⤋