ARE INTEREST RATES GOING UP? Not yet… No! They are about to though! Interest rates are low (on a 30 year fixed rate mortgage) and have stayed artificially low (for such a long time). The Federal Government has been keeping them that way – stimulating the economy by buying mortgage backed securities.
HOW LONG will the FED keep doing this? WHEN will they STOP? They have A-N-N-O-U-N-C-E-D I-T : March 31,2010
They will stop March 31, 2010. Originally September 30,2009 was the end date. But, because that date would have thrown the US economy into a tailspin (winter on the horizon and much of the US – except maybe Florida – affected by climate and a depressed seasonal housing market), the Fed announced in December of 2009 that they will stop buying mortgage backed securities March 31, 2010.
When will interest rates go up? – INTEREST RATES WILL GO UP THE NEXT DAY!
WHAT are the predictions for interest rates in 2010? Steve Harney (New York Real Estate Guru and founder of “Keeping Current Matters”) says the world economy will turn around once the US economy does – the US economy of course hinges on the Real Estate Market improving – and Harney firmly believes that NOW IS the time to buy real estate…. before interest rates go up.
Interest rates will go up April 1,2010. The Washington Post speculates that there may be some wiggle room as to that March 31st date, if there’s indication that the US economy will be adversely affected. HSH & Associates predicts interest rates will nudge upward between 5% and 6% … closer to 6%. The Washington Post predicts that interest rates will be at 6% by the end of 2010. MoodiesEconomy.com foresees rates at 6%. Barry Habib (Mortgage Market Guide) anticipates interest rates could go as high as 6.5%. Morgan Stanley predicts interest rates will be between 7.5% -8% by the end of 2010. The Wall Street Journalsays that a 10% decrease in price and a 1% increase in interest rate result in the same amount monthly payment for the home buyer! And Esslinger Wooten Maxwell Realtors, Vicki and Alexandra Restivo, predict changes in the Miami Real Estate Market .