Mortgage rates are supposed to rise in 2011, according to the general consensus of the finance industry at the start of the year. But here we are more than a quarter of the way through the year and interest rates remain essentially unchanged.
Does anyone really know where rates are headed?
We’ve seen recent predictions of higher mortgage rates turn out dead wrong.
Last year at this time the news media advised us to ‘lock in mortgage loan rates now’ amidst warnings that there was serious ‘trouble ahead’ for housing and the economy when rates rose later on in 2010.
But rates did not go up in 2010; they actually fell instead for most of the second half of the year. And rates do not appear poised for a run-up any time soon in this year either.
So why the discrepancy between interest rate forecasts and reality?
The case for higher rates seems to make sense
The rationale behind the predictions of higher rates makes a lot of sense on paper. Rates have been historically low for a very long time now. The U.S. has borrowed trillions of dollars over the last two years. With announcements today that the economy is doing better and job openings are becoming more plentiful, there should be upward pressure on interest rates.
Yet on the same day that the above upbeat economic data was released, bond yields actually fell. The bond market focused instead on President’s Obama’s announcement of his plan to reduce future Federal borrowing.
There may be forces at work keeping interest rates low that have not yet been recognized by financial experts.
Forecasts just guesses?
That may be part of the reason why so many predictions over the last few years about the future direction of interest rates have proved inaccurate. While the mortgage experts quoted in the news are sincere and mean well with their interest rate projections, we’ve seen again and again that no one really knows for sure what the future holds for rates.
With interest rates having been so low for so long now, they will likely rise at some point in the future. But estimating when and by how much rates will rise remains pure guesswork.
The bottom line for anyone making purchase or investment decisions: don’t base your behavior on the day’s headlines.
Act prudently to take advantages of what opportunities are available to you now. Do what makes financial sense for your future and don’t worry about what you can’t control.
Recent predictions about rates in 2011
Here are some of the better articles I found on where interest rates may be headed in 2011:
http://mortgage-x.com/general/rate_trend.asp
http://fha-interest-rate.com/2011/03/fha-mortgage-rate-predictions-irrelevant/
http://www.bankrate.com/finance/mortgages/mortgage-rate-trend-index8-162143-1.aspx
http://www.dailymortgagereport.com/2010/12/housing-mortgage-predictions-2011/
Copyright ©2011 02038.com
You get more with Warren Reynolds than you do with other top real estate agents. You’ll find in Warren rare knowledge and experience dedicated to helping you achieve all the value that home brings. Warren has a law degree and 20+ years of home selling success in Massachusetts. — talk with Warren today! 508-561-6259
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"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
Not only is Warren highly skilled and dedicated to protecting your best interests, he will be highly responsive to your needs! He CARES about his clients and is always, always there for them. In person, by phone, email or text, whenever you need him, you’ll get a prompt response from Warren! Warren’s clients rave about the high degree of consideration and attention they get from him. Why not give it a try? Contact Warren now and see how well he takes care of you! – talk with Warren today! 508-561-6259
"I had many, many questions which Warren was always more than willing to answer with a never ending patience. Throughout the process Warren looked out for my best interest. I may have purchased a garden style condo but Warren treated me like I was purchasing a million dollar estate!" -MP
Get the attention you deserve.
Warren is a very creative real estate practitioner and he uses that creativity in ways that provide important advantages to clients. Creatively runs in Warren’s family! His uncle was Harnett T. Kane, an internationally-recognized investigative journalist and New York Times best-selling author of thirty books about the American South. Warren employs his own creativity by producing compelling marketing, both in print and especially online! His www.02038.com, is a highly effective website promoting the wonderful lifestyle afforded by the Town of Franklin, MA. And his Market Updates content on Massachusetts real estate trends gives home buyers and sellers alike the context they need to make more informed decisions about their housing investments. Warren frequently uses his abilities to devise resourceful solutions to the diverse challenges that threaten to complicate most real estate transactions. Warren has made real estate his career and won many sales awards in his 20+ years in brokerage, including the highly prestigious Chairman’s Circle Gold Award and the elite Centurion Award. Experience Warren’s refreshing difference today! 508-561-6259
"Your creative approach to all aspects of my move helped make the transition easy and pleasurable. You were recommended to me by a friend who appreciated your integrity, expertise, friendliness and conscientiousness - qualities that I have witnessed in abundance as we've worked together." -KB
Get creative with Warren.
You get more with Warren Reynolds than you do with other top real estate agents. You’ll find in Warren rare knowledge and experience dedicated to helping you achieve all the value that home brings. Warren has a law degree and 20+ years of home selling success in Massachusetts. His legal knowledge and decades-long experience in putting — and keeping — real estate sales together give him a better handle on the legal, practical and emotional dynamics of the real estate transaction. Warren uses these skills to empower clients to achieve more! He often anticipates and resolves problems BEFORE they can become serious impediments. Enjoy the sense of trust, security and control that comes from having a highly skilled expert at your side — talk with Warren today! 508-561-6259
"We have now bought and sold five homes. By far, you have been the best realtor we have worked with. Your professionalism and knowledge are so valuable to your clients. You made this process so easy. "-CB
Make better decisions and feel in control.
All real estate agents are legally and ethically bound to be fiduciaries acting in their client’s best interests. But many agents give their fiduciary duties short shrift in their quest for the quickest and easiest path to a closing. Not Warren Reynolds! His name stands for integrity and he takes his fiduciary duties to you very seriously. He’ll steadfastly put your interests first throughout your home purchase or sale. This may make Warren work longer and harder for you than most other agents would. But ultimately, Warren’s diligence and attention to detail is his commitment to an experience that transcends the sale. He wants you to have the confidence and peace of mind that comes with having a true fiduciary protecting you. Discover the difference of working with an agent who does not view you as just another opportunity for a commission – talk with Warren today! 508-561-6259
"Warren was always there for us. Throughout the process, Warren kept on top of all our concerns. Warren worked for us, and looked out for our best interest. He is a very professional and caring person." - BP
Feel safe and well taken care of.