Comments on: 2009 Mortgage Interest Rate Predictions!

By: David Walden

David Walden — Wed, 11 Nov 2009 23:47:42 +0000

Jim – I just saw a comment that you made on Facebook while you were writing a story and remembered back about the predictions of 7% mortgage interest rates by the end of the year. I am still locking in rates at 4.75% on “conforming” loans, so my suspicion is that 7% is still out there somewhere in the future but not before the end of the year. The Fed has slowed their buying of our own mortgage backed securities (kinda like robbing Peter to pay Paul) but still will be buying through the first quarter of 2010. When they either run out of our money or some of the insanity starts coming to a halt, we will see interest rate rises. I suspect though we will end up 2010 in the 6(s) – middle to high but no 7% unless you are talking about the hard to get jumbo loans.

Let’s revisit this at the end of 2010 and see where we are…

This is still a great time to buy real estate so keep on buyin’

Dave Walden

By: Jim Walberg

Jim Walberg — Tue, 23 Jun 2009 19:28:53 +0000

Hey David…thanks for checking in again with your mortgage update. YES…Buyers who are planning to make a purchase this year need to act NOW! Great interest rates, a good selection of homes to choose from, and prices that are still adjusted to the 2003 price levels makes this a perfect time to buy. As the year unfolds other factors are expected to increase mortgage rates by the end of the year. So…BUY!

By: David Walden

David Walden — Tue, 23 Jun 2009 18:56:13 +0000

Well rates for a 30 year fixed at $417,000 and below are sitting at 5.25% (5/1 ARMS are at 4.375%) today with one of our major lenders. We had a blip in the market on May 27th due to an overload with the lenders and an enormous amount of loans put into the market with no buyers for that volume. Lenders have now caught up and rates have gone back to “normal”. I still predict I will be locking loans at 5.5% and below in August.

We are in interesting times and foreign investors in our debt (mortgage backed securities) have not been as strong as in our history but we still are one of the best and consistent investments available for the world market.

This is still a great time to buy for anyone looking for a good deal. Interest rates will continue to fluctuate and may even go back down to the middle to high 4% range if the market stumbles again but even at 5.25% those are some of the lowest rates in our history.

By: Michael Tacconi

Michael Tacconi — Thu, 28 May 2009 14:26:45 +0000

Where are we now?

By: 2009 Mortgages Have Found Their “Sweet Spot”! » East Bay Real Estate

Thu, 28 May 2009 14:11:24 +0000

[...] One of these key factors will not continue for much longer – attractive mortgage interest rates. And…you can quote me on it, “Mortgage interest rates in the $725,000 and below price points will go UP by the end of year – maybe as high as 7%!” My reason for making this prediction is inflation. I believe we will see inflation kick back in within the next month or two driving mortgage rates up from current rates of 5.8%. [...]

By: Appraisals - The Next BIG Hurdle In Buying & Selling Real Estate! » East Bay Real Estate

Wed, 22 Apr 2009 17:32:15 +0000

[...] Jim Walberg provides a first hand experience regarding what is becoming the next BIG hurdle for Buyers and Sellers of real estate, and it is starting right now! [...]

By: Jim Walberg

Jim Walberg — Thu, 09 Apr 2009 05:24:19 +0000

I just read an article on Yahoo! Finance that was titled, “Mortgage Rates May Fall to 4.2% By Each of Year: Economist” This was based on analysis using trends on the Merrill Lynch Proprietary House Market Index. The summary comment was, “The expected fall in the mortgage rate offsets the expected increase in continuing clais, suggesting that the environment for home sales will improve over the remainder of the year. However, sales are expected to remain sluggish and may not be sufficient to absorb the inflow of the supply of foreclosures still coming…” In conclusion they stated that, “A bottoming in housing still remains elusive, and unemployment rates increasing to over 10% could hamper a recovery.”

So, a completely different opinion that what has been commented on by Michael and David. Any more thoughts?

By: Jim Walberg

Jim Walberg — Tue, 07 Apr 2009 23:28:53 +0000

Thanks for the clarification. At may age there are times when I can’t keep up with your humor. Enjoy your day.

By: David Walden

David Walden — Tue, 07 Apr 2009 23:25:18 +0000

Well – I did not understand his – “People who are accustomed to instant meals, instant internet access, traffic light sensors, or movies-on-demand tend to forget these things.” I just responded that I take my time. No big deal. Fun enough!

By: Jim Walberg

Jim Walberg — Tue, 07 Apr 2009 22:54:41 +0000

So, David…what is the deal with, “…the long dinners with someone that I care a lot about. At my age, I want them to last as long as they can.” Is this referring to something in my posting? Until next time….