Friday, October 7, 2011

Experts: Interest rates have nowhere to go but up

 
 

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via HomeFinder.com News by HomeFinder.com News on 10/6/11

According to a recent report from The Wall Street Journal, while the nation's interest rates for mortgages may remain low, experts predict they have to begin rising soon.

"It's hard to imagine how long-term, 30-year fixed-rate mortgages could go lower than they are right now," said Frank Nothaft, chief economist and vice president of Freddie Mac. "These are the cheapest rates we've ever seen."

However, while experts have bought into this theory, they have been wrong before, the article relays.

Earlier in 2011, economists did not expect a weakened economy. Concerns regarding the European market lowered consumer confidence, and the Federal Reserve's plan to sell short-term government securities and buy long-term securities helped lower interest rates, both unforeseen by experts.

For the week ending September 29, the average rate for a 30-year fixed loan was 4.01 percent, the lowest rate on record since Freddie Mac's Primary Mortgage Market Survey began in 1971.

Despite the belief that rates will rise soon, other experts aren't sold.

Bob Walters, chief economist of Quicken Loans, believes interest rates could push lower, as everyone has been surprised numerous times so far this year. 


 
 

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