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Mortgage Rate Predictions – Pimco’s Bill Gross Says 4.5%

Posted on | February 9, 2009 | 4 Comments

The governments actions to help fix the economy will cause mortgage prices to fall to 4.5% says Bill Gross of Pimco.  “I think at some point we are going to see a 4.5 percent mortgage rate and the 10-year treasury rate capped at some level,” was a statement made by Bill Gross on CNBC on February 9th, 2009.  Gross also feels that the government will inject even more capital into the needy banks.  What exactly is a “needy” bank?  Aren’t they all needy in this environment?  Will rates really drop to 4.5% after more money is injected into these banks?

Even if rates do go this low anytime soon, it is highly unlikely that many Americans will be able to get these new “low” rates approved.  It is one thing to see them advertised and a totally different thing to actually get a rate approved and funded.  The lenders are receiving money from the federal government so they are not as desperate for capital as they were three months ago.  Obviously this will save many lenders, but will it save Americans from defaulting?  For some reason, it doesn’t seem so.

Hopefully there will be stipulations that are forced upon lenders to actually……lend!  What a novel idea that doesn’t seem to be happening very much lately.

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4 Responses to “Mortgage Rate Predictions – Pimco’s Bill Gross Says 4.5%”

  1. Predictions « Financial Fallout
    February 9th, 2009 @ 10:59 pm

    [...] By jwojdylo Looks as if subprime blogger has some more mortgage rate predictions up.  Make sure to go over and check them out.  They have been pretty accurate so [...]

  2. Housing Information « JRWojdylo
    February 9th, 2009 @ 11:23 pm

    [...] thinks this housing market will get better and mortgage rates will go to 4.5%.  That is quite a mortgage rate prediction!  We will see if this [...]

  3. Mortgage News Source :: Predictions :: February :: 2009
    February 15th, 2009 @ 9:34 pm

    [...] expected, making mortgage rates predictions was not as easy as expected for those attempting it.  We had a bounce back closer to 5% on the [...]

  4. Subprime Blogger / Will Obama’s Making Home Affordable Program Affect Mortgage Rates?
    March 9th, 2009 @ 3:12 pm

    [...] early February, Bill Gross predicted mortgage rates would fall to 4.5%.  If one of the world’s largest mutual fund managers makes this type of [...]

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