Well, well, well.
I guess it’s not about when rates are going to go up.
It’s about how long they can continue to stay down.
Why are they still
low?
Political calculation?
Bad US Policy?
Bad Stock Market?
Unemployment numbers?
Rates are not only down, but they have actually dropped (though they popped up slightly yesterday).
The
10 YR
yield is what most most
mortgage rates are based on –
In the past 2 weeks, as rates
have found recent lows,
I’m still not seeing a huge pickup of 1-bedroom deals- that said, saving $50-100 per month on a mortgage strengthens the argument of buying over renting.
- Beautiful For Now
HSBC broker Frank Cronin has some great insight.
“I do not think conforming rates are going up substantially or quickly
just because the only way rates can go is up. I think low rates on conforming products will be around for awhile, maybe years.”
On the other hand, we have Jumbo loans (above $729k).
Mr. Cronin’s issue is how Europe affects US rates.
“Assuming that
Greece’s debt issues is going to effect the European Economy as a whole (Greece has the lowest rating of any sovereign country),” we could have a real problem on our hands.
“If Greece and it’s debt continues to be down graded getting closer to default that will effect the LIBOR (L is for London).”
Frank writes, “If the LIBOR goes up these rates could be in the 4’s and that would hurt the only market that is truly trading, the Jumbo and Super Jumbo Market.
Hopefully people truly realize know is the time to buy.”
That’s a well-buried lead, underneath lots of negativity.
More positive outlook from Olga Savelov, tough-nosed mortgage broker to the stars…
She felt that his comments helped rates improve in the market.
She writes, “Bernanke essentially made some downbeat and economically depressing comments, all in all it’s about inflation and how fast it comes.”
Ms. Savelov refuses to pull out her crystal ball, but claims that home loan rates will stay volatile, then BOOM -will likely worsen quickly.
Both experts see foreign invesment pushing apartment prices
up.
So much interrelated.
We’ll see if Europe affects rates here in the US.