What will Interest Rates do in 2010?

Profile picture for NVA Realtor

We all know these wonderful low rates can not last forever, but will we at least see another year around 5.00%?
I purchased my 1st home in 1984 with a rate of 16.50%. I remember how happy I was when I refinanced into a 9.50% rate in 1987! We built an entire business in the late 1980's and early 1990's around FHA 8.00% and 8.50% assumptions. When I was working at Crestar Mortgage in the late1990's we had to lock the doors and take the phones off the hook because rates had hit sub 7.00%!!! Now we have a whole generation that thinks rates are outlandishly high when they reach 5.50%. What will happen when they inevidably drift back above 6.00%. Will the market place implode or will we continue to buy and sell homes?
All things to consider as we move ahead with our recovery. Let me know your thoughts on rates in 2010 and what the impact will be to the housing market. Good luck and here's to everyone's success!!!

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February 09 2010 - Centreville
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Answers (2)

Profile picture for sunnyview
I think that rates will head up in 2012. People have been lulled into expecting a rate around 5%, but I think that those are unlikely to continue after the economy starts to find it's feet.
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February 09 2010
Profile picture for GreatRateFolks
My first home purchase in the same time frame was 13.99, and we thought that was a GREAT rate. Serious surprises await us as the inevitable upward trends of rates begin, and yes, I think stalling the market for some period of time. I agree, clients these days are spoiled by these artificially low rates, and I think rates will trend upwards over the course of 2010. Jim
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February 09 2010
 

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