Most of the time, I refrain from commenting on interest rates – simply because it is impossible to predict where they are headed in the short term. So when people ask me “are rates going to go up or down?” I usually tell them that rates can do any one of three things: go up, down or stay the same.
That said.
This week, the Fed announced that would buy up to $1.2 Trillion worth of mortgage backed securities and long term treasuries. The short term result of this will be that rates may go slightly lower – but then they will almost certainly go up.
Probably dramatically up.
I got my first mortgage in 1995 and it was a 7% FHA loan. We have bought and sold a small handful of houses since then and mortgage rates have been in the 5-7% range. With all of the recent things that the government has done to “fix” the economy… I suspect that at some point in the relative near future, we are going to see mortgage rates rise. Possibly dramatically.
I wasn’t even a teenager in the early 80′s – but I have heard stories about 15% mortgage rates. Will we return to those days within the next few years? I don’t know. But my best prediction skills tell me that the days of 5-6% mortgage rates are not going to be here for long.
Arizona Mortgage Rates for March 20 2009
{ 1 comment }
Mortgage rates will go up…I hope they wont go dramaticly up!
positive thinking
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