Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Can anyone here give insight on why the average a 30 year fixed mortgage rate went from 5.80% last week to 6.23% now?
Where is this headed? Why?
Moderator: I realize there's a mortgage forum, but want to know about the financial forces causing this, in view of the massive bailouts and market swings taking place. Thought this forum could give better big picture answers.
It's influenced by the 10-year treasury note, the yield on which rose by 0.43 percentage points over the last 5 business days. It's up another 0.15 points tentatively today.
Is there any projection or way to predict where 10-year treasury notes are headed? Should I expect 7% 30 yr mortgage rates soon?
For house prices to correct to fair value (from their artificially inflated prices) the rates must increase...unless the Fed does something stupid [again] and keeps house prices pumped up above fair value.
If you look back at the housing market in the 90's, there was a last bottom in home prices after interest rates rose in 1994 and home construction had recovered (resulting in supply of cheaper homes). I believe it was sometime around 1995 or 1996 in the DC area.
The first decline in the late 80's was due to lax lending practices which resulted in a buildup of foreclosures. Some areas continued to still increase in price during that time. The first bottom occurred as a result of the recession in 1991-1992.
For house prices to correct to fair value (from their artificially inflated prices) the rates must increase...unless the Fed does something stupid [again] and keeps house prices pumped up above fair value.
I disagree with that statement. Prices have already corrected significantly to fair value without any change to interest rates. It's all supply and demand, interest rates are only a part of the formula on the demand side. In today's market it's the supply side that is the biggest problem.
i want to know how i can sign up for one of these houses. to buy
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
