interest rates (mortgage, credit rating, loans)

[hdzup3]

are the rates going to keep rising?

[FLBob]

I assume you mean mortgage rates...
If banks continue to see lending money as a risk then yes.

[DailyJournalist]

I think they will rise but not much. The economy needs to be stimulated and raising interest rates would potentially bring it to a hault.

[Racelady88]

They are heading up Mortgages get more expensive - again - Aug. 8, 2008

[loves2read]

yes
because banks were stupid and greedy--now they have to raise their rates to recoup losses THEY created--

[Sunnydee]

Good morning all!


http://i234.photobucket.com/albums/ee91/Gypsy48/Morning/thGOODMORNINGSUNROTATING.jpg (broken link)



I think the rates are going to continue to creep up.

[lostinflorida]

Rates will continue to rise because banks are low on reserves. In the early 80s, mortgage rates were as high as 13% because of recession. Some have predicted that rates will continue to rise until banks work through this process and put more money into their reserves.

[loves2read]

looking at at least another 2 years of financial problems since now the "liar loans" are kicking in-these are loans for "reasonable" amounts (not the mega mortgages for sub prime loans) that no one bothered to verify income/assets for...
needless to say THOSE people don't have much to fall back on when an ARM kicks in or they lose their jobs...
the fat lady is down in the dressing room--not nearly ready to walk to the wings before she is called on stage...
it is going to be a bumpy ride for a good while longer IMO

[Big House]

Originally Posted by hdzup3

are the rates going to keep rising?

Hey hdzup3,

I believe that interest rates are going to bump around, but not change much this year. The signals on inflation (the only reason they will raise interest rates) are confusing. There has been a pretty significant drop in comodities lately (as you can tell at the gas pump). It is not only gas, copper, gold and other things are off quite a bit. Those things typically drive inflation (and there is inflation), but it is not clear what the rate of inflation is going to be for a while, and until that picture clears they won't be raising rates.

Banks on the other hand are going to make it tougher for people to get loans. It is going to be very difficult to get financing unless you put 20 percent down, and if ones credit rating is not above 720 they may be paying an additional 1/4 point interest on their loans. They are in the process of rearranging the way mortages are viewed.

My expectation is that housing prices still have more to drop. Sellers are in a tough spot right now . . . they all feel they've dropped enough . . . and I can't blame them for that. But, appraisers are lowering their estimates, and if you offer more than the appraised amount, the buyer has to come up with that variance and add it to the 20 down payment in order to qualify for the loan. That is going to put more pressure on both the buyer and the seller alike. I'm sure you're already up to speed with that. . .

How are you doing? Have you had any more looks at your house? I hope so, this is the market where things should start to turn. People like to make their move and get settled in by now, or the next time table is by Thanksgiving. Energy efficiency is going to be the focus for you living in the N.E. I hope you get some luck soon! My fingers are crossed for you!