Mortgage Rate Predictions - Free Psychic Reading.
100% Accurate Mortgage Rate Prediction.
You're not going to be happy with my predictions about mortgage rates, but what I'm about to tell you is 100% accurate and the absolute best psychic prediction you'll ever get on mortgage rates. You can bet everything you have on this prediction. What will mortgage rates do in the future? They will do one of three things. Are you ready? I hope you're sitting down. Here's what mortgage rates are going to do in the future:
- They will either go up
- Or they'll go down
- Or they'll stay the same
See, you're mad at me already for being honest with you, but it's the truth. I was in the mortgage business for many years until the real estate 'bubble' in 2005. All my clients were concerned about mortgage rates so I know what I'm talking about. All you can bet on for sure is what I've already told you.
Probable Mortgage Rate Predictions.
Now if you want some likely but not absolute predictions for the future, here's what I see. Since the 1930's mortgage rates have averaged 6-7% and that includes the time period in the 70's when inflation was high and mortgage rates climbed to 18%. So it's likely that rates have now come down to their normal levels and will continue like this in the future.
The high rates in the 70's and 80's were caused mostly by inflation. Prices were climbing so fast that the demand for credit was high. People wanted to buy things now and were willing to use credit to their advantage. They knew that if they waited, prices would be higher in the future. Right now economists are predicting continued deflation or falling prices as demand for goods and services decrease.
My prediction is that this period of deflation and falling prices will not last long. People have compared this time period to the 1930's. I don't see that yet. But their is gloom and doom everywhere. In my experience, things always get better when the news is at it's worse. By the time the media figures out the economy is better, several months have gone by.
Here's an example, in the spring of 2003 I predicted that stock prices would rise dramatically in the next few years. Everyone laughed at me because they just lost most of what they had in the market. But I was absolutely right. As soon as I made that prediction, the market moved aggressively to the upside and the rise in prices was sustained.
The opposite is also true. Back in early 2000, experts were encouraging people to get into the stock market because it was doing so good. Yes it was for many years. But I predicted that the market was going to see a catastrophic collapse that rarely occurs. I started making this prediction in December of 1999 and took all my money out of the market. To my surprise the market climbed rapidly from Jan to March of 2000 so my prediciton was premature. But the top came in March of 2000. If you bought stocks in March of 2000 you know what happened. You bought at the exact top! The media didn't notice what was happening until later in the the year and even then most experts were still predicting the market would bounce back quickly. Of course it didn't and the down trend continued for three long years.
Also when the high demand for real estated ended in June of 2005, the news continued to talk about the high demand for homes. It wasn't until Sept or Oct of 2005, that the media started talking about the market slowing down.
Fundamental analysis and news is always a 'lagging' indicator of the economy. I prefer to bet my money on leading indicators.
Why Mortage Rates Are Not Likely To Fall Below 5% Long Term.
As for mortgage rates, it's not likely that rates will drop much less anytime soon because many investors have lost interest in mortgage backed investments. In order to keep them interested and willing to accept the risks, they'll be demanding at least 5 - 7%. Of course this is assuming you have good credit, a good job, very little debt, some money saved, ... a letter from you parents, ... and so on.
The days of stated income loans, no doc loans, 125% loans and other risky lending practices are over and I predict that we won't see crazy mortgage lending guidelines for many, many years. FHA and government backed mortgages are the best deal in town right now and has replaced most of the subprime lending market. However you will need to qualify. If you're financial situation is not good there is a good chance you won't qualify for a new mortgage - even if you're willing to pay high rates.
by Liz Becker
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Mortgage Rate Predictions
Google News:
Mortgage Rates Tick Down to 4.95% - Wall Street Journal, Thu, 11 Mar 2010 18:46:54 GMT+00:00, Link
Fed bought $10 bln net in agency MBS in latest week - Reuters, Thu, 11 Mar 2010 20:13:40 GMT+00:00, Link
Capstead Mortgage Corporation Declares a $0.50 Per Share First Quarter 2010 ... - MarketWatch (press release), Thu, 11 Mar 2010 21:21:34 GMT+00:00, Link
New mortgage form delivers mixed message - San Jose Mercury News, Thu, 11 Mar 2010 20:44:46 GMT+00:00, Link
Gov't official warns on home down payment hikes - The Associated Press, Thu, 11 Mar 2010 21:13:48 GMT+00:00, Link
Mexico's Infonavit Upbeat On Mortgage Bonds After Record Deal - Wall Street Journal, Thu, 11 Mar 2010 20:38:16 GMT+00:00, Link
SNB sends warning on excessive mortgage borrowing - Reuters, Thu, 11 Mar 2010 15:58:14 GMT+00:00, Link
National Bank Financial Group Adjusts its Mortgage Rates - MarketWatch (press release), Thu, 11 Mar 2010 18:02:03 GMT+00:00, Link
Woman loses parrot, has house ransacked by Bank of America in mortgage ... - New York Daily News, Thu, 11 Mar 2010 21:35:22 GMT+00:00, Link
Lloyds Banking to Allow Extra Mortgage Repayments Until 2011 - BusinessWeek, Thu, 11 Mar 2010 18:28:34 GMT+00:00, Link
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