Will mortgage rates fall in the next year?

Question

Will mortgage rate fall below 5% in the new year, will inflation raise greater than 3% will the US dollar ever match the British pound what do you think? Serious educated discussion please.

Answer 1

no way! i don't think the mortgage rate will drop below 5%.

Answer 2

while mortgage rates will fall next year, they surely won't fall below 5%. The last time they were that low was in 2001-2002 when the interest rate was at 1%. Right now it's at 4.5%, down from 5.25% few months ago. Lower interest rates mean lower mortgages because it is cheaper for the companies to lend money from the Federal Reserve.
About inflation. It is incorrect to think that inflation only raises when the economy is strong. Ironically, it's usually even worse when the economy is doing poorly. Slow economic growth causes manufactures to look for other ways to dicount for lower sales due to less demand, so they look to raising prices which creates inflation. Another thing that will creat inflation is the falling dollar which will make imports, which the US is really dependant on, more expensive, therefore forcing the importers to make prices higher, creating inflation
You must be joking with the dollar matching the pound, that will never happen, according to PPP calculations, the pound is overvalued to the dollar by about 30% making the exchange rate that would equal the prices in both countries to be 1.62USD/pound. It would take a major depression in Britain and great prosperity in the US to make it go down that 62 cents, making it almost impossible, and definitely not in the next decade
Summarizing:
Mortgages at below 5%, no, but they will fall next year
Inflation about 3%, possible, inflation is sure to rise a bit next year
Dollar equal to pound: forget about it

edit: Real Estate Guy, u can't be serious saying it's a good time to buy a house, prices are plummeting like crazy

Answer 3

You answer depends on the type of mortgage you are looking for.

Most of the members on this forum seem to think that unless you have a 30 yr fixed rate mortgage then you are not an American.

There are a variety of mortgages for a reason. One does not fit all.

Can anyone predict the future? Naw, but most can give an opinion. I think the Adjustable rate mortgage will go below or right at 5%.

Now how you use an adjustable is up to you. I find them attractive at times for certain investment properties, as well as the financial situation I am in at the time.

I also refinance my home into an adjustable rate when I think it will suit my financial needs at the time.

You can not go into any financial transaction unless you are fully aware of all your options and how they affect you.

I am not into currency trading so I can not tell you anything about the pound and the dollar and how they relate to each other.

The Fed will reduce the interest rate to keep inflation under control. This has been their method in the past, I see no reason for them to change the way they have been doing business.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 4

I don't see the mortgage rate falling below or getting anywhere close to 5% next year. Think about this....We are now where we were 10 yrs ago. The US dollare will never match the British pound simply because the governments won't allow it. Inflation will rise and fall with the times....

Answer 5

No I do not think mortgage rates will go below 5% unless we are in a depression. I think we all got a little spoiled in 2003 when they bottomed out at about 5% and then remained in the low to mid 5's for a while. Right now rates are right around 6% for a 30 year fixed. If they do go down, i think it will be slightly. There is more room for them to go up than down, especially if you look at historical charts.

Answer 6

Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every monthcompanies offer different interest rates so it is a good idea to shop around for the best deal before settling on one particular lender.

Answer 7

Your answer is no accross the board here. If we are lucky, mortgage rates will hit 5.5% by June, but that's a unlikely. Inflation comes from a strong economy and we certainly don't have one... nor will that change soon. The british pound would have to weaken before the US dollar can strengthen, but 1.2-1.4 is healthy... you wouldn't want 1 to 1 as that would mean that britain is garbage.

Answer 8

30 year fixed rates have NEVER been below 5%.

It will not happen. In fact, rates were up this week.

Inflation is a worry and I'm betting that rates will increase about 1% this year.

However, this is a guess, just like everyone elses.

If you are interested in buying a home. It's a good time.

Answer 9

costs have been below 6% on account that 2009 and characteristic endured to say no ever on account that. we are at the instant experiencing a clean downward style in previous due March 2015 (6 years later). loan costs (at the instant below 4%) have won downward rigidity from the decline interior the ten-twelve months Treasury Bond value.