interest rates go higher ??

[peterb]

This is a critical question for the RE market. Becuase if they do go up over 7%, the RE market will have huge pressure to reduce prices even more than they are already. The trends we know are now in action…rising unemployment,recession, tightening credit, rising real inflation,etc… are providing downward pricing pressure. But I’ve always thought that mortgage rates followed T Bills pretty closely. But the risk-reward model makes more sense to me. I’ve heard believable arguements on both sides for it going up and down. Can anyone with more in-depth insight chime in on this?????

[NotCranky]

There should be some notion of capitalism left to consider with mortgage rates. Demand for mortgages is dismal even at current rates.It would be hard for them to go up too fast unless the lenders want to go out of business. With all these new assurances and those coming, I doubt they do, especially considering available returns to be had otherwise.

[NotCranky]

There should be some notion of capitalism left to consider with mortgage rates. Demand for mortgages is dismal even at current rates.It would be hard for them to go up too fast unless the lenders want to go out of business. With all these new assurances and those coming, I doubt they do, especially considering available returns to be had otherwise.

[NotCranky]

There should be some notion of capitalism left to consider with mortgage rates. Demand for mortgages is dismal even at current rates.It would be hard for them to go up too fast unless the lenders want to go out of business. With all these new assurances and those coming, I doubt they do, especially considering available returns to be had otherwise.

[NotCranky]

There should be some notion of capitalism left to consider with mortgage rates. Demand for mortgages is dismal even at current rates.It would be hard for them to go up too fast unless the lenders want to go out of business. With all these new assurances and those coming, I doubt they do, especially considering available returns to be had otherwise.

[NotCranky]

There should be some notion of capitalism left to consider with mortgage rates. Demand for mortgages is dismal even at current rates.It would be hard for them to go up too fast unless the lenders want to go out of business. With all these new assurances and those coming, I doubt they do, especially considering available returns to be had otherwise.

[Omega Point]

I’m no expert but I have to believe they are going up. Inflation is raging, risk is higher (so a larger risk premium will be priced in), the dollar is losing value, the debt and deficit are out of control with no short or long-term outlook for cutting gov’t spending, and there is now, however soft, whisper about the U.S. eventually losing its AAA rating within the next decade. All of this screams higher interest rates and significantly higher interest rates. Maybe not next year but its the track we are on. The only way out is a severe belt tightening and paying down of debt by everyone including the U.S. gov’t.

[Omega Point]

I’m no expert but I have to believe they are going up. Inflation is raging, risk is higher (so a larger risk premium will be priced in), the dollar is losing value, the debt and deficit are out of control with no short or long-term outlook for cutting gov’t spending, and there is now, however soft, whisper about the U.S. eventually losing its AAA rating within the next decade. All of this screams higher interest rates and significantly higher interest rates. Maybe not next year but its the track we are on. The only way out is a severe belt tightening and paying down of debt by everyone including the U.S. gov’t.

[Omega Point]

I’m no expert but I have to believe they are going up. Inflation is raging, risk is higher (so a larger risk premium will be priced in), the dollar is losing value, the debt and deficit are out of control with no short or long-term outlook for cutting gov’t spending, and there is now, however soft, whisper about the U.S. eventually losing its AAA rating within the next decade. All of this screams higher interest rates and significantly higher interest rates. Maybe not next year but its the track we are on. The only way out is a severe belt tightening and paying down of debt by everyone including the U.S. gov’t.

[Omega Point]

I’m no expert but I have to believe they are going up. Inflation is raging, risk is higher (so a larger risk premium will be priced in), the dollar is losing value, the debt and deficit are out of control with no short or long-term outlook for cutting gov’t spending, and there is now, however soft, whisper about the U.S. eventually losing its AAA rating within the next decade. All of this screams higher interest rates and significantly higher interest rates. Maybe not next year but its the track we are on. The only way out is a severe belt tightening and paying down of debt by everyone including the U.S. gov’t.

[Omega Point]

I’m no expert but I have to believe they are going up. Inflation is raging, risk is higher (so a larger risk premium will be priced in), the dollar is losing value, the debt and deficit are out of control with no short or long-term outlook for cutting gov’t spending, and there is now, however soft, whisper about the U.S. eventually losing its AAA rating within the next decade. All of this screams higher interest rates and significantly higher interest rates. Maybe not next year but its the track we are on. The only way out is a severe belt tightening and paying down of debt by everyone including the U.S. gov’t.

[bsrsharma]

U.S. eventually losing its AAA rating

I think it is meaningless to attach a rating to paper issued by treasury. Treasury can always exchange it for $ at Fed and pay back the creditor. It is better to think in terms of value of currency when rating national debt. Going by the value of $ as measured by oil (or grain or steel etc.,), global markets are already rating it less than “AAA”.

[bsrsharma]

U.S. eventually losing its AAA rating

I think it is meaningless to attach a rating to paper issued by treasury. Treasury can always exchange it for $ at Fed and pay back the creditor. It is better to think in terms of value of currency when rating national debt. Going by the value of $ as measured by oil (or grain or steel etc.,), global markets are already rating it less than “AAA”.

[bsrsharma]

U.S. eventually losing its AAA rating

I think it is meaningless to attach a rating to paper issued by treasury. Treasury can always exchange it for $ at Fed and pay back the creditor. It is better to think in terms of value of currency when rating national debt. Going by the value of $ as measured by oil (or grain or steel etc.,), global markets are already rating it less than “AAA”.

[bsrsharma]

U.S. eventually losing its AAA rating

I think it is meaningless to attach a rating to paper issued by treasury. Treasury can always exchange it for $ at Fed and pay back the creditor. It is better to think in terms of value of currency when rating national debt. Going by the value of $ as measured by oil (or grain or steel etc.,), global markets are already rating it less than “AAA”.

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