Zillow Advice: Market Conditions - How Long Will Interest Rates Stay Low? http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ Zillow Advice | Zillow Real Estate I feel like rates will remain ... http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ I feel like rates will remain low (under 6%) for a couple more years.&nbsp; There are many factors involved in determining the rates, and it's nearly impossible to predict where they will go, but that's the common expectation.<br/>If rates go up high enough it can slow the demand and slow price increases.&nbsp; If rates soar to match a hyperinflation type number, pricing could fall.&nbsp; There is still a lot of demand in Phoenix Metro area with the small upticks in loan rates. Mon, 19 Aug 2013 13:58:00 GMT http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ 2013-08-19T13:58:00Z Yes, I will go on record ... http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ Yes, I will go on record with another prediction....(I've made hundreds here on Zillow, with an accuracy rate of about 75%, you can read them all if you cared)<br/>3.25% average ZMM 30 yr fixed quote (or below) for at least one open market hour (defined as 6 am to 5 pm Pacific Time, Monday through Friday, excluding Federal Holidays), for &lt;80% loan to value ratio, 740+ FICO (middle score), $200k to $416k loan amounts, sometime between September 9, 2013 and November 1, 2013.<br/><br/>(Yes, Congress can kick the can down the road again, but this last kick the can down the road was done for them with the windfall of revenue they didn't anticipate, due to shifting of profits/income from this year back to last year due to lower tax burden last year).<br/><br/>If you heard absolutely nothing regarding the unexpected windfall of Federal revenue in April, then you obviously were not paying attention to any economic news.<br/><br/>No, I absolutely don't care what any Realtor&reg; thinks of any economic issues.&nbsp; The National Association of Realtors&reg; was responsible for millions of families going bankrupt in 2007 through 2010, and millions of households experiencing foreclosures, and almost a complete economic collapse of over 50 countries, due to their political lobbying of congress and HUD for extremely bad housing and lending policies, and their intentionally deceptive "talking points" they used to try to snow the American public.&nbsp; And that was completely predictable in 2002, and one Realtor that happened to also be a math professor was making such predictions on Zillow as early as 2007. Fri, 19 Jul 2013 13:25:00 GMT http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ 2013-07-19T13:25:00Z "The Fed meeting minutes ... http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ "The Fed meeting minutes and Bernanke's remarks were 100% based on the unexpected April Tax windfall, that was 100% predictable based on the "fiscal cliff" legislation passed in Congress on 1/1/13.&nbsp; The "recovery" is 100% imaginary, and the debt ceiling discussion was only postponed a few months."<br/><br/>Sorry not buying it,(&nbsp;<a href="http://mam.econoday.com/byshoweventfull.asp?fid=455488&amp;cust=mam#top" rel="nofollow">http://mam.econoday.com/byshoweventfull.asp?fid=455488&amp;cust=mam#top</a>&nbsp;) highlight of FED minutes never mention fiscal cliff, but wait why would they the federal reserves dual mandates are to maximize employment and moderate long term interest rates...&nbsp;<br/><br/>As far as being 100% predicable maybe you should run for office, since no one else seems to have seen this coming but you.<br/><br/>Debt ceiling were only postponed a few months?? LOL this has been a can they have been kicking down the street for years just like the BS legislation that was passed hours before the deadline even though they had over 500 days to reach an agreement.<br/><br/>As far as the recovery, not as good as we are let to believe? Maybe. 100% fake, sound like more BS.<br/><br/>But hey lets just agree to disagree<br/><br/> Fri, 19 Jul 2013 12:56:00 GMT http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ 2013-07-19T12:56:00Z There is currently signs ... http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ <p>There is currently signs of rising interest rates at this time&nbsp;however with the market shaky past there is no way to determine if it will continue to rise or fall.</p> Fri, 19 Jul 2013 04:39:00 GMT http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ 2013-07-19T04:39:00Z If only we could all foresee ... http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ If only we could all foresee into the future to better determine the answer to that question. Unfortunately, nobody really knows if rates will increase or decrease. Everything is going by the seat of your pants right now and alot of it is based on QE3 and whether the government will continue to, for lack of better terms, pump fake money into the US system through their wonderful 85k per month bond buying program. Bernake, the FED chairman, spoke again today and it seems that when he starts talking about the economy getting better and how they are going to slow the Bond buying program the stocks go down, investors run to pull money out of Bonds and then the rates increase. I have been watching daily. We just have to keep our prayers high, but bare in mind rates are still great where they are now. It isn't at 6% or even close which is a great rate currently. Good luck in your endeavors and I wish you the best<br/><br/> Fri, 19 Jul 2013 02:39:00 GMT http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ 2013-07-19T02:39:00Z Bernanke's comments today:He ... http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ <a href="http://bloomberg.econoday.com/byshoweventfull.asp?fid=459393&amp;cust=bloomberg-us&amp;year=2013&amp;lid=0&amp;prev=/byweek.asp#top" rel="nofollow">Bernanke's comments</a> today:<br/><br/>He described future policy changes in three stages.<br/>1) The first stage in pending policy change is ending asset purchases which depends on substantial improvement in the labor market.<br/>2) The second stage would be when <u><strong>unemployment reaches 6.5 percent</strong></u> and <u><strong>inflation still is under 2.5 percent</strong></u>, then there will consideration of raising policy rates.<br/>3) The third stage will be normalization of policy rates. <br/><br/> Bernanke anticipates a long period of accommodation after asset purchases end. <u><strong>He does not see tight policy</strong></u> any time in the foreseeable future. <br/><br/> He noted that the Fed must key <u><strong>an eye on mortgage rates and affordability</strong></u>. <br/><br/> He repeated that QE will <u><strong>end by mid-2014 if</strong></u> the recovery tracks as anticipated. <br/><br/> Bernanke indicated that the Fed will not wind down its balance sheet until after beginning rate hikes. The Fed currently is <u><strong>not planning to sell</strong></u> any mortgage-backed securities at this point. <br/><br/> Regarding fiscal policy, Bernanke noted that monetary policy is not a panacea and that the Fed would welcome help from fiscal policy as the recovery is not as strong as preferred. He also stated that it is not the Fed's place to try to force Congress to take a given action but to implement monetary policy in line with what it is given in terms of fiscal policy. <br/><br/> On whether there will be <u><strong>tapering</strong></u> announced at the September FOMC, Bernanke said that it is <u><strong>too early to determine</strong></u>. He noted that economic data have been mixed since the last FOMC. <br/> Thu, 18 Jul 2013 23:13:00 GMT http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ 2013-07-18T23:13:00Z 4.5% was seen on 7/5/13&nbsp; ... http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ 4.5% was seen on 7/5/13&nbsp; (30 yr fixed average quote, &lt;80%.LTV, 740+ FICO, between $200k and $416k loan value).&nbsp; It is meaningless to give one number with no qualifications.&nbsp;&nbsp; The rates change more than that in one month time frame just due to typical economic news, such as unemployment claims, net new jobs, consumer price index, retail sales, consumer confidence, GDP, European country debt, asian GDP...<br/><br/>Here is a link to an economic calendar for some of the expected U.S. economic news (no items for today):<br/><a href="http://bloomberg.econoday.com/byweek.asp?cust=bloomberg-us&amp;lid=0" rel="nofollow">Bloomberg Economic Calendar</a>.<br/><br/>Lets not forget, the Federal Reserve is still intentionally subsidizing mortgage interest rates, and have stated they will continue to do so until the unemployment level is down to their target range.&nbsp; Has anyone seen any real change in the unemployment numbers yet?&nbsp; What economically needs to happen to have fewer people looking for work?<br/><br/> Thu, 18 Jul 2013 23:01:00 GMT http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ 2013-07-18T23:01:00Z According to the Mortgage ... http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ According to the Mortgage Broker Association (MBA), by the end of 2013, the interest rate on a 30-year fixed mortgage will be at 4.4 percent. And by the end of 2014, they see the rate at 4.6 percent. Hope this helps. If I can be of any more assistance contact me via my agent profile. Thu, 18 Jul 2013 22:53:00 GMT http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ 2013-07-18T22:53:00Z The Fed meeting minutes and ... http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ The Fed meeting minutes and Bernanke's remarks were 100% based on the unexpected April Tax windfall, that was 100% predictable based on the "fiscal cliff" legislation passed in Congress on 1/1/13.&nbsp; The "recovery" is 100% imaginary, and the debt ceiling discussion was only postponed a few months.<br/> Thu, 18 Jul 2013 21:09:00 GMT http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ 2013-07-18T21:09:00Z The charts are great however ... http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ The charts are great however your timeframes for QE news are off.<br/><br/>It was a recent development when FED members began speaking of the bond buying ending in 2014. Prior to that however during Mays FED meeting it was announced that it would begin in June 2013. This caused the jump in rates as well as the pullback in the markets.<br/><br/>During the month of May immediately following the FED meeting Bernanke spoke on Bloomberg and later was confirmed by the FED minutes that the tapering will begin later this year (2013) as early as June.<br/><br/>Check out the link I posted above, I wrote a story on it back in May with respect to the impact on rates rising. Thu, 18 Jul 2013 20:51:00 GMT http://www.zillow.com/advice-thread/How-Long-Will-Interest-Rates-Stay-Low/502503/ 2013-07-18T20:51:00Z