Will 30 year fixed rate mortgage rates ever go down?
Everybody keeps saying that the economy needs a jump start – well, I am certainly willing to do my part and spend more once I have refinanced my current mortgage. However, it seems like the 30 year fixed rates continue to hover around 6-6.25%. Is there any reason to believe that these rates will fall?
Just like everything else they will go down and they will go up. I have been in real estate 30 years and seen a lot of things happen that “everyone” said would never happen.
A practical answer to the question I think you are asking is that I do not believe that mortgage rates will be much lower anytime soon, they might be higher within the next year. Investors that provide the money for 30 year mortgages are worried that inflation is coming back and they are reluctant to commit to low rates.
Effect of an interest rate cut on mortgage rates?
The Fed has announced they may cut interest rates in the middle of March. I am currently working on getting a mortgage for a property I will close in mid-April. Should I wait to lock the rate until after the Fed announces the cut?
With the threat of inflation scaring the bond traders these days, another rate cut by the Fed would likely cause mortgage rates to rise. Don’t get greedy. Cut your best deal now.
Could it be that short term interests are used by the greedy as an excuse to increase mortgage rates?
(in reference to my question) Short term interest rates only apply to installment loans such as credit cards, but they do not have any impact on mortgage rates because those are determined by Treasure Bond rates or long-term rates.
Please do your own research and homework.
Mortgage rates if the Fed buys more bonds?
If the Fed buys more bonds what affect, if any, will it have on current mortgage rates?
Interst rates will go down even more.
The feds credit card is maxed out. Doubt they will do QE4.
How low can mortgage rates go?
Mortgage rates went back down the 5.5 range this past week. It seems this is a good rate at this time, but really no better than it was about a year ago. Given the economy, I’m hoping they finally decide a viable fix would be to really lower the mortgage rates substantially so that those who have been financially responsible can buy into the market. Realistically, what would the lowest the mortgage rates could get? Thanks!
I think when rates are in the 5% it’s pretty low. I don’t think they will go that much lower.
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