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Bob
Participant[quote=5yearwaiter]
1) What if our Fed would increase higer interest rates in all other sectors but not housing or mortgage(may be it standardise a level say 6%) – what would be the situation if this happens?.[/quote]
The Federal Reserve doesn’t set “mortgage rates”, but indirectly influences them by purchasing US securities in what Bernanke refers to as “quantitative easing”.
[quote]I tend to agree your theorey, but I have lost my faith on these academic…brainers who can play any extent … whatever those unpredictable results in either way!!! [/quote]
What I posted isn’t so much a “theory” as it is an educated prognostication on future trends based on current actions taken by the Feds.
As for your purchase, I wish you good luck, but don’t allow yourself to become part of the multiple bid warriors who are running around with their heads chopped off thinking they must buy now or lose out forever.
Participant[quote=5yearwaiter]
1) What if our Fed would increase higer interest rates in all other sectors but not housing or mortgage(may be it standardise a level say 6%) – what would be the situation if this happens?.[/quote]
The Federal Reserve doesn’t set “mortgage rates”, but indirectly influences them by purchasing US securities in what Bernanke refers to as “quantitative easing”.
[quote]I tend to agree your theorey, but I have lost my faith on these academic…brainers who can play any extent … whatever those unpredictable results in either way!!! [/quote]
What I posted isn’t so much a “theory” as it is an educated prognostication on future trends based on current actions taken by the Feds.
As for your purchase, I wish you good luck, but don’t allow yourself to become part of the multiple bid warriors who are running around with their heads chopped off thinking they must buy now or lose out forever.
Participant[quote=5yearwaiter]
1) What if our Fed would increase higer interest rates in all other sectors but not housing or mortgage(may be it standardise a level say 6%) – what would be the situation if this happens?.[/quote]
The Federal Reserve doesn’t set “mortgage rates”, but indirectly influences them by purchasing US securities in what Bernanke refers to as “quantitative easing”.
[quote]I tend to agree your theorey, but I have lost my faith on these academic…brainers who can play any extent … whatever those unpredictable results in either way!!! [/quote]
What I posted isn’t so much a “theory” as it is an educated prognostication on future trends based on current actions taken by the Feds.
As for your purchase, I wish you good luck, but don’t allow yourself to become part of the multiple bid warriors who are running around with their heads chopped off thinking they must buy now or lose out forever.
Participant[quote=5yearwaiter]
1) What if our Fed would increase higer interest rates in all other sectors but not housing or mortgage(may be it standardise a level say 6%) – what would be the situation if this happens?.[/quote]
The Federal Reserve doesn’t set “mortgage rates”, but indirectly influences them by purchasing US securities in what Bernanke refers to as “quantitative easing”.
[quote]I tend to agree your theorey, but I have lost my faith on these academic…brainers who can play any extent … whatever those unpredictable results in either way!!! [/quote]
What I posted isn’t so much a “theory” as it is an educated prognostication on future trends based on current actions taken by the Feds.
As for your purchase, I wish you good luck, but don’t allow yourself to become part of the multiple bid warriors who are running around with their heads chopped off thinking they must buy now or lose out forever.
Participant[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.
Participant[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.
Participant[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.
Participant[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.
Participant[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.
Participant[quote=wannabe2077]I visited a friend in Inland Empire. he lives in a place with a lot of foreclosures.
Rents have dropped from $2000 to $1500 for 3 bedroom home in a decent neighborhood[/quote]
I’ve experienced the same thing in the Temecula Valley. As investors continue to purchase there, it has created an increase in the supply of rentals at a time when purchasing is actually cheaper than renting. The result is lower monthly rentals.
Participant[quote=wannabe2077]I visited a friend in Inland Empire. he lives in a place with a lot of foreclosures.
Rents have dropped from $2000 to $1500 for 3 bedroom home in a decent neighborhood[/quote]
I’ve experienced the same thing in the Temecula Valley. As investors continue to purchase there, it has created an increase in the supply of rentals at a time when purchasing is actually cheaper than renting. The result is lower monthly rentals.
Participant[quote=wannabe2077]I visited a friend in Inland Empire. he lives in a place with a lot of foreclosures.
Rents have dropped from $2000 to $1500 for 3 bedroom home in a decent neighborhood[/quote]
I’ve experienced the same thing in the Temecula Valley. As investors continue to purchase there, it has created an increase in the supply of rentals at a time when purchasing is actually cheaper than renting. The result is lower monthly rentals.
Participant[quote=wannabe2077]I visited a friend in Inland Empire. he lives in a place with a lot of foreclosures.
Rents have dropped from $2000 to $1500 for 3 bedroom home in a decent neighborhood[/quote]
I’ve experienced the same thing in the Temecula Valley. As investors continue to purchase there, it has created an increase in the supply of rentals at a time when purchasing is actually cheaper than renting. The result is lower monthly rentals.
Participant[quote=wannabe2077]I visited a friend in Inland Empire. he lives in a place with a lot of foreclosures.
Rents have dropped from $2000 to $1500 for 3 bedroom home in a decent neighborhood[/quote]
I’ve experienced the same thing in the Temecula Valley. As investors continue to purchase there, it has created an increase in the supply of rentals at a time when purchasing is actually cheaper than renting. The result is lower monthly rentals.
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