Has anyone heard of the Interest Rates going down anytime in the near future?
Hee Hee…good one…and just when I was looking for a laugh, too!
Keith
I take it not for a while… Da@$
Last I heard was it’s going up a 1/4
I think it’s just the beginning. I would foresee the 30-year fixed moving to 7-1/2%+ by the end of the summer…but, hey, I’m just the “phone guy”…
Keith
Err… What a bummer!
They considered moving them up 1/2 pt at the last meeting. The increases won’t stop for awhile.
1970’s 8.97% 1.20 pts
1980’s 12.71% 2.17 pts
1990’s 8.12% 1.65 pts
2000’s 6.51% .72 pts
Last 10 years 6.89% .99 pts
Here’s historical information of average 30 year fixed rates with relative points accoding to this guy Freddie Mac.
Anyhow, word on the street is that rates may climb another +0.5% by the end of the year. They should then stabilize possibly even decline a bit after that. Thankfully our increases have been steady and moderate.
This chart puts things in perspective. Rates are still historically low. This is good news. Although, I have heard that with the increases in rates homebuying and ownership will decline slightly in the coming year. I have seen this in our local market.
Why is this good news? Because if you are a landlord, many market rents are expected to increase 5-6%…
People who have speculated and bought more home than they can chew will feel the brunt of this. Now seems like a good time to be an investor to me.
As history repeats itself (Stock Market Deterioration) we just may see this happen… :o…Actually the exit from Stock investments, (partially related to higher interest rates) helped to create the recent Real Estate Interest… ;D