District Lending Manager, Consumer First Mortgage
2 years ago
Based on the commentary of people way smarter than me, most expect rates to stay low for a while, at least through 2012. Until we start seeing an overal decrease in unemployment and the country begins to have an overall positive feeling about the economy, I personally believe rates will continue to stay low.
The Fed can only affect rates artificially. Just because they don't raise their rates, doesn't mean interest rates for mortgages won't fluctuate. Mortgage rates are tied directly to the 10 year treasury bond, and the more demand there is for t-bonds, the lower rates will be.
There's a lot of economic unrest around the rest of the world (Europe for example). If economies around the world start to fail or possibly default, that's going to make the US even more attractive for investment...even despite our recently reduced credit rating.
Just my $0.02.