A Prospect Looking for a Home Loan in Alameda asked where will rates be in the Summer of 2010???

by The Buzzz on Jan.05, 2010, under The Buzzz Blog

She liked my answer so much I decided to blog it…

We know interest rates will be going up soon. How soon and how much are the big questions. There is still no consensus on when the Fed will begin to increase rates. The majority, but not universal, expect the Fed to begin increasing rates by Q3, that would suggest markets will begin anticipating this by moving up rates in late Q1 or early Q2. The other “majority” is hanging to the belief that the Fed will not move up rates until the end of the year or early 2011. This is built on the foundation that the Fed has never increased rates until employment begins to improve and isn’t likely through the first half of the year. Whether the feds moves up rates or not, the housing market itself is going to move rates higher. If we look for just one keystone for the economy its the housing sector; and that is not as positive as some believe. The housing market and the commercial markets have a steep hill to climb this year.

My personal prediction is the conforming 30 year will be somewhere between – 5.25 and 5.625 – you heard it hear first! Lets see what happens.

You can also use my Rate Tracker at www.garrick.biz

ronnie
January 5th, 2010 on 4:32 pm
Epic. Added to digg for you. Happy 2010 Kitchen Bar Stools
Janice
February 24th, 2010 on 7:22 pm
I am always searching online for articles that can help me. Thank you
Lavonna Tooles
March 4th, 2010 on 7:34 pm
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