When are interest rates going up?

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

People have been telling me for the last two years to hurry up and buy a house, because interest rates will not stay this low. It seems as if they have held low for a while now. I wonder what factors will contribute to an increase. I know that Greenspan hinted he might raise rates, but I think that depends on a recovery. Are we in a recovery? When will rates rise?

lodge1 · Joined: 29 Jan 2005 Posts: 7 Location: Houston, TX

rates will actually go up when inflation starts to rise. as long as inflation is kept under control there is nothing to really drive up long term rates. the fed will continue to raise their short term rates which will drive up the ARM's.

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

So...being less informed than some of you...how have interest rates changed in the last year?

(I'm glad you brought this topic up again)

lodge1 · Joined: 29 Jan 2005 Posts: 7 Location: Houston, TX

long term rates have remained basically flat, even though the fed has had several rate increases since your original post. ARM rates have increased quite alot. We were doing Interest Only loans on 6 mo libor at 3.25% a year ago, now the rate with the same rebates are going for 4.375%. 3yr and 5yr ARMs have also gone up. I've seen some rate sheets from lenders with those intermediate arms almost as high as 30 yr fixed.

the cluckmeister · Joined: 27 Jan 2005 Posts: 30 Location: The Chicken Ranch

As long as Bush is in office nothing to worry about. The economy is in the dumps and not getting better. Notice the flow of $ into the bond market today after 4th quarter results? If you can't even get a wave durring Xmas season you know there are problems. That will keep rates low. I honestly think we are going to be good for the next 4 years as long as Bush is in office. A f*cked economy = low rates. Money flows to the bonds where it is safer and drives down mortgage rates. How about this drop today after the economic news was released. http://finance.yahoo.com/q/bc?s=^TNX&t=1d

Watch it go lower on Monday. Any bets? Watch what happens on Sunday with the Iraq elections when there are suicide bombings left and right and watch the the DOW, NASDAQ drop like a brick and the money flow into the bond market. After this next Bush failure nobody is going to be confident in the economy or anything. You heard it hear first. If I am wrong I can take criticism like the best of them. But I doubt I will have to defend myself. And not to be disrespectful but 9/11 was the greatest day in mortgage history. From that day and months following rates dropped to the lowest they had been in decades. And when Bush's "plan" fails in Iraq on Sunday, you are going to see a shift like you have never seen before.

Nuff Said. Bring it on(as Bush would say)

chow · Posted: Sat Jan 29, 2005 11:33 am Post subject:

When are we going to march into the next oil country? That will make July of 2003 look like a cake walk at the lender's offices!

(I was taking correspondent loans we had to review for purchase-home to work on at the rate of 4-5 file boxes, a weekend that month! During the week I was taking home broker's loans, and working all night!) :?

Quixote · Joined: 28 Jan 2005 Posts: 60 Location: Southern California

My company has dropped rates slightly since the first of the year and rumor has it another one is coming in February, after two small raises in December. The market just isn't tolerating rate hikes.

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

Everybody warned me last year that I better get a loan quick before interest go up. It sounds like they should have said "before the bottom falls out." :lol:

chow · Posted: Sat Jan 29, 2005 8:56 pm Post subject:

I really like my 4.5 fixed rate 15 yr. If the Airport comes along and buys me out-part of the negotation process is the same rate......and I can take the inside of my house with me for 1 USD!

I married Bob Villa's honest twin....So the whole house is "Screwed together"
:lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

chow · Posted: Sat Jan 29, 2005 10:07 pm Post subject:

David wrote: Everybody warned me last year that I better get a loan quick before interest go up. It sounds like they should have said "before the bottom falls out." :lol:

So I guess you are the fine owner of "the 8 ball"? :shock: :shock: :shock: :shock: :shock: :shock: :shock:

the day people actually expet you to predict rates, margins, and the mixed mash..... :oops: :oops: :oops: :oops: :oops: :oops: :oops:

You can go on line and have a site that pays you too!?b :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll:

Live by the dollar and die by ....... :?: :?: :?: :?: :?: :?: :?: