Menu

Why is this happening?

We like it when experts are wrong about their predictions.

We have been warned for many months that mortgage rates will likely rise this summer and loans near 6 percent will be the norm. Fortunately, the experts made these predictions before knowing a European debt crisis would hit and investors would flee to into the U.S. bond market for safety.  Because of this, mortgage rates are incredibly low and rates could go as low as 4.5% this summer. The Wall Street Journal reports:

“A general rule of thumb holds that every one percentage point decline in mortgage rates is the equivalent of roughly a 10% reduction in the home price for the buyer. So, if the current rates hold, say economists, that could help stabilize prices and allow current homeowners to sell existing homes without substantial price cuts.”

You also might like...

Neighbors block party

5 Ways to Get to Know Your Neighbors

shutterstock_284732567

Everything You Need to Know About Employer Relocation Packages

shutterstock_148299182

What to Do If Your Home Isn't Selling

Fire Lookout-48

Preventing Forest Fires: What You Can Do

Subscribe for Zillow Blog updates

We will not rent, share or spam your account, ever. Please read and review our privacy policy.

You can also stay updated by following us below

instagram googleplus pinterest