January 12, 2010. All signs point to the Fed raising interest rates in the next 90 days but some experts believe they may opt to pull money out of circulation instead to combat inflation. From my perspective, raising rates while they are trying to stimulate the economy by offering a tax credit to home-buyers and home-sellers doesn't make sense. The tax credit program has helped to keep the local real estate industry afloat for the past year, but "the rate" is what gets buyers out of their seats no matter what incentives are available to them.
I checked with a couple of mortgage brokers yesterday to see what they are offering for a 30 year fixed and the consensus seemed to be 5%. Last year at this time the 30 year rate was about 5.25%. If we can keep the 30 year at or below 5.25% for the first half of 2010, buyers and sellers will be out in force.









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