Found this real good article from Diana Olick below with her Real Estate Predictions for 2010. Just wanted to high light the Mortgage section for rates and my previous post about Mortgage Rates Will Rise by End of 1st Quarter 2010 (March). Remember, with the FED backing away from buying Treasuries Securities by the end of 1st Quarter 2010, unemployment number possibly trending down, and housing stimulus programs nearing an end, then mortgage rates should move up. Also be listening to what the FED plans on doing about the over night rate because it can not say at 0% to .25% for much longer.
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As posted in my last article Mortgage Interest Rates
Now, it has been announced that the FED will start to pull back from buying Treasury securities sometime around March 2010. Economics 101, if demand for these go down then price will go up and that means interest rates. The problem though with predicting anything in the financial market is that it is never just that ONE item that causes movement. There are a lot of other factors that will cause interest rates to change, and this is just one of those causes.
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Wow, The report from the article I found below about mortgage rates have fallen again for the 3rd consecutive week. As a reminder check out my previous post about 1st quarter of 2010 and to watch out for mortgage rates. Hope this helps and now is the time.
Mortgage Rates Fall Again
The FED will most likely announce today after their two day meeting they will leave the over night rate unchanged currently at 0 to .25%. The overnight rate is the going rate at which the FED charges banks for borrower money. So now looking back at any of the banks quarterly earnings, if they can borrower money at 0 to .25%…..lend it at 4.5 to 5.5%…….that is a pretty big profit. Further story at CNBC.com
All the eyes though on this announcement are more aimed towards the wording, is the FED planning to raise rates sooner or later? There has already been the announcement of the FED to stop Treasury buying (the United States debt) so that might be one impact on interest rates. They announced this would take place at the end of the 1st quarter (March). Depending on the direction they want to give, raising of the over night rate must come sooner or later. There is a lot going against the rates being this low…..dollar devaluation, but there is a lot going against raising them, JOBS, real estate, lending.
Hope this helps 
Always interested in your comments, so feel free to contact me.
I wouldn’t consider myself an economist, but I did take economics 101. Remember learning about this thing called supply and demand. Currently, the United States is printing money for free….or should I say 0% to .25%…..that is the overnight rate currently. The government has also increased borrowing which means we sell that debt off and the top 3 holders of our debt are:
1. Federal Reserve and Intragovernmental Holdings 4.785 Trillion (March 2009)
2. Mutual funds 769.1 Billion (U.S. Treasury securities)
3. China (mainland) 776.4 Billion
Now, it has been announced that the FED will start to pull back from buying Treasury securities sometime around March 2010. Economics 101, if demand for these go down then price will go up and that means interest rates. The problem though with predicting anything in the financial market is that it is never just that ONE item that causes movement. There are a lot of other factors that will cause interest rates to change, and this is just one of those causes.
Will interest rates go up tomorrow, next week, next month, next year……..that is very tough for anyone to predict and if someone can……..they would be on an island somewhere they own and not telling other people of their predictions.
What I will leave you with is this; The FED can’t keep giving away money at 0% to .25% and will have to raise the overnight rate and protect the weaking dollar. Historically when rates are low and the dollar is weak, rates raise and in my opinion the reason they have been kept low for this long is to help get America back on its feet.
That is why it is important to take steps now, and find ways to reduce the amount of debt you have.
www.jasonwroble.com “Taking a bite out of your biggest debt, YOUR MORTGAGE!”
Oct6
I often hear of people waiting to get the rates at the very bottom……well…..we are here. Even if you got a rate some where in the 5’s……wouldn’t that still be good enough and low enough for you? When a person buys a stock, of coarse you want to buy it at its very lowest and sell at its very highest. What happens if you stay on the side line and never get in the game…..well you don’t get to play.
Let me give you two reasons why NOW IS THE TIME!:
1. $8,000 tax credit ……….you could get this money!!!
2. Rates are pushing an all time low record. If you are waiting for them to get lower……DON’T!!!!
We can help you nationwide and Podemos ayudar en espanol!
With my network of trusted individuals within the housing industry, allow me to be a person who is a one stop person for any of your home buying needs. If you are needing a mortgage on your purchase, or the refinancing of your mortgage start by sending me an email or give me a call now.
Oct3
I sound like a broken record about this $8,000 tax credit for 1st time home buyers, but November 30th is right around the corner and if you were ever just thinking of buying…….NOW IS THE TIME.
Let me give you two reasons:
1. $8,000 tax credit ……….you could get this money!!!
2. Rates are pushing an all time low record. If you are waiting for them to get lower……DON’T!!!!
Have you ever heard of a person buying a stock buy at the excact lowest price of that stock…….NO! If a person did, then it is like them winning the lottery. The FED can not keep printing our money for FREE (over night rate is 0% to .25%) and from the sounds of it, looking to start pulling back buying treasury notes in the 1st quarter of next year. What this means is when the Treasury stops buy the governments debt……….RATES GO UP!!!
I can assist you nationwide and Puedo Asistirle en espanol!
With my network of trusted individuals within the housing industry, allow me to be a person who is a one stop person for any of your home buying needs. If you are needing a mortgage on your purchase, or the refinancing of your mortgage start by sending me an email or give me a call now.
