Interest Rates

The questions is: Do I think interest rates will go back down again before they go back up?


According to bankrate.com the general rates today are lower than they were last week, but just by a hair. It's a tough question that I don't know the answer to because there so many outstanding factors and variables. There is a common misconception that just because The Fed cuts the interest rates banks are going to lower their interest rates... Although this can happen it is not necessarily the case - especially right now...




To follow up and dig further, I just texted a loan officer that I work with and he said that forecasting anything right now is nearly impossible.




Unitil the market is stable I don't think anyone is going to feel comfortable predicting the course of interest rates over the next couple of months.



About a month ago our office thought we saw some stabilization in the market with a temporary decrease in short sales, they are however picking back up again.



If you are planning on refinancing it's going to be a tough call. Lenders are incredibly strict on their loan to value ratios.



I live by the principle that a bird in hand is better than two in the bush. We know now that interest rates are still low. As I talk to the people who have been in the business now for 20 years they think that "we" have been spoiled by these rates. To them too high is 19%... so I suppose it is all perspective. I know that 1/8 of point can make a difference, but waiting to find out could cost you 2 points if you are not careful. Also, I am not happy to see that consumer confidence is not picking back up after the election and that the unemployment rate continues to rise...



I hope this helps. Some websites I visited to research:

http://money.cnn.com/2008/11/06/real_estate/mortgage_rates/index.htm?postversion=2008110616

http://www.bankrate.com/

http://www.treasurydirect.gov/