Keller Williams Realty
https://www.buyhomesincharleston.com/blog/morgtage-rates-on-the-way-up.html


Mortgage Rates on the Way Up?

Posted By: Alan Donald In: Mortgages
Date: Thu, May 28th 2009 5:56 pm

Flying MoneyYesterday mortgage bonds had their worst performance since last October, and as a consequence rates climbed about a half of one percent! It appears that the Treasury has been issuing bonds (i.e. like printing money) to fund all these massive rescue programs, and yesterday supply of bonds exceeded demand and prices for  whole bond market fell, causing interest rates to climb to try to attract buyers.

If the bond market does not bounce back through the several levels of resistance that it went down through, mortgage rates are going to stay higher for a while. It seems that those buyers and investors that were waiting for the 4% mortgage rates are going to have to make a tough decision.

It would not surprise me to see mortage rates in the 5%-6% next year, given the inflation potential that the increase in money supply can bring...

If you are thinking of buying - don't wait too long! I think the combination of low real estate prices, oversupplied markets (i.e. negotiable sellers) and historically low mortgage rates is not going to last long!