[quote=AN]How high will rates go up to this Winter? Any prediction for the next 5 years?[/quote]
To get a better indication of when and how high rates will go, look at two things. 1)The continued purchase of securities by the Feds. 2) The general improvement in the economy.
If the Feds announce this summer that they are ending the purchasing of securities, mortgage rates could very well spike a full percentage point by the next day. Ironically, if the economy shows improvement later this summer, that will have a negative effect on the bond market as well, resulting in higher rates. And then there is the “inflation factor” to calculate.
I won’t make a guess as to what the actual rate will be next winter, but I wouldn’t be shocked to see it at around 6.5%-7% for a 30 yr. fixed. And only God knows what the rates will be in five years, but one thing I can say, if market forces are allowed to once again take over, interest rates will be much higher across the board.
