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Mrs213
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Member since 2/09 18986 total posts
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When do you predict the interest rates will rise?
Prices of homes are still down...
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Posted 7/21/12 9:32 AM  |
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marianne13
LIF Adolescent
Member since 6/10 887 total posts
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When do you predict the interest rates will rise?
Hopefully rates won't rise for a long time. A rise in interest rates will crush the housing market. People are able to afford what they can afford today because of the low rates. Once those rates go up, everyone's target price will go down.
Message edited 7/22/2012 11:43:02 PM.
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| Posted 7/22/12 11:42 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
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That Led To The Wrong Tendencies
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When do you predict the interest rates will rise?
Rise to what? 5% and higher?
Not anytime soon.
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| Posted 7/23/12 8:04 AM |
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Mrs213
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Member since 2/09 18986 total posts
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Re: When do you predict the interest rates will rise?
Posted by ave1024
Rise to what? 5% and higher?
Not anytime soon.
I was curious because we'd reall love to refinance but right now our house has no equity due to home values dropping. I'm hoping in a few years when we have more equity we can do a refinance just hoping the rates won't be too high by then...
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| Posted 7/23/12 9:27 AM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
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Re: When do you predict the interest rates will rise?
Well we are on our 7th year of a 5 year ARM. While we planned to sell and be out by 5 years, we are still working on it (new baby, illness, etc). We weren't in such a rush the last 2 years, since our interest rate went from 5 1/8 to 4 1/4 and then last year to 3 1/8. It was awesome!
This year (going into our 8th year) it just went up (august) to 4 1/8 again.
I'm not sure if that's a trend or we just expired on a bad month. Usually if you look at the bond market, you can see what interest rates are doing. If bonds go down, interest rates go up and vice versa.
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| Posted 7/23/12 10:52 AM |
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Re: When do you predict the interest rates will rise?
Posted by Mrs213
Prices of homes are still down...
Actually, home prices have leveled off and are holding steady.
Rates are being held artificially low, and have been for an extended period, but as soon as the economy starts to improve, the rates will start to rise. Many of the mortgage bankers I deal with think they will start to go up in the near future.
It's true that people will be able to afford much less when the rates start to rise. For example, on a $300K loan, a rate of 6.25% v. a rate of 4% = a monthly payment of approximately $430 a month more.
But I've also read that a slight rise in rates will actually stimulate the market. A lot of buyers are sitting on the fence thinking that the rates will go down even lower, even though they are at an all-time low. If they rise a bit (and when they start to rise, they will rise gradually, economists predict), then it might actually stimulate the market because all of the "fence sitters" will rush to buy.
Also, I don't think that the rates going up will crush the market. Most buyers purchase a home for reasons beyond pure financial investment. For example, when I bought my house in 2008, rates were in the low 6s. I was pregnant, and dh and I wanted to buy a house on LI to have more space and be near family (after years of renting in Manhattan). If I knew the rates would have dropped to 4 or even below 4 a couple of years later, I still would have gone ahead and bought my house in 2008 because that's when our lifestyle and personal circumstances dictated it was time to get a house. And many of my buyer customers buy for similar reasons.
Of course, the rates do make a huge impact on how much house one can afford, so if someone tells me they are thinking of buying in the next year or so, I think the time to buy is NOW when the rates are low, even if it means buying with a smaller down payment.
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| Posted 7/23/12 11:18 AM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
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Vicki
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Re: When do you predict the interest rates will rise?
Posted by Mrs213
Posted by ave1024
Rise to what? 5% and higher?
Not anytime soon.
I was curious because we'd reall love to refinance but right now our house has no equity due to home values dropping. I'm hoping in a few years when we have more equity we can do a refinance just hoping the rates won't be too high by then...
We are refinancing now and qualify under the HARP program. We also have pretty much no equity in our house. It's worth it to go to your bank and speak to a mortgage person to see if you can refinance. We are doing it through Bethpage Federal Credit Union.
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| Posted 7/23/12 2:07 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
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Beth
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Re: When do you predict the interest rates will rise?
from what I am being told not till after 2013
that came from someone very high up at chase bank
they love to tell everyone- soon, in the near future- b/c that gets you to sign quicker
I have been hearing rates are going up for 3 years- then have only gone down
they are going to start allowing all under water- ON TIME borrowers to refi soon
and they are changing the short sale process a bit- since NYS hasn't foreclosed on anyone in over 2 years
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| Posted 7/23/12 6:04 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: When do you predict the interest rates will rise?
Posted by VickiC
Posted by Mrs213
Posted by ave1024
Rise to what? 5% and higher?
Not anytime soon.
I was curious because we'd reall love to refinance but right now our house has no equity due to home values dropping. I'm hoping in a few years when we have more equity we can do a refinance just hoping the rates won't be too high by then...
We are refinancing now and qualify under the HARP program. We also have pretty much no equity in our house. It's worth it to go to your bank and speak to a mortgage person to see if you can refinance. We are doing it through Bethpage Federal Credit Union.
you should be able to under the current program- but there is a new program coming out to allow all on-time borrowers refi
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| Posted 7/23/12 6:05 PM |
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Mrs213
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Member since 2/09 18986 total posts
Name:
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Re: When do you predict the interest rates will rise?
Posted by Beth
Posted by VickiC
Posted by Mrs213
Posted by ave1024
Rise to what? 5% and higher?
Not anytime soon.
I was curious because we'd reall love to refinance but right now our house has no equity due to home values dropping. I'm hoping in a few years when we have more equity we can do a refinance just hoping the rates won't be too high by then...
We are refinancing now and qualify under the HARP program. We also have pretty much no equity in our house. It's worth it to go to your bank and speak to a mortgage person to see if you can refinance. We are doing it through Bethpage Federal Credit Union.
you should be able to under the current program- but there is a new program coming out to allow all on-time borrowers refi
I looked up online about the current HARP program and it seems you need to have purchased your home before May 2009, so we won't qualify for that. I'm curious o know what the new program will be...
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| Posted 7/24/12 12:31 AM |
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Salason
♥
Member since 6/05 9878 total posts
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Re: When do you predict the interest rates will rise?
Posted by Beth
they are going to start allowing all under water- ON TIME borrowers to refi soon
and they are changing the short sale process a bit- since NYS hasn't foreclosed on anyone in over 2 years
Just had to address these points:
HARP IS the program that refinances underwater, but current, borrowers since 2009 (albeit with revisions to guidelines along the way.)
NYS has absolutely completed foreclosures within the last 2 years. Yes, the backlog is huge and timelines have extended such that a foreclosure takes in excess of 3 years in NYS but they are still getting done.
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| Posted 7/24/12 9:43 PM |
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