Mortgage Rates Forecast Shows Lower Interest Rates Ahead
Posted on | July 13, 2009 | No Comments
The current mortgage rates forecast shows low interest rates in the near future. For a month period interest rates moved higher but that trend reversed greatly when the 10 year treasury rate yield almost hit 4%. Since almost hitting 4%, the 10 year has moved all the way back down to 3.3% in a few short weeks. With this in mind, it is very hard to forecast anything but interest rates going down.
Low interest rates are something that President Obama feels will help us out of this economic crisis. The Fed rate is basically at zero and Ben Bernanke is trying his best to keep mortgage rates at or below 5%. This is a very troubling time for the Obama administration because the actions that are taken in the next 6 to 12 months could help to move this economy forward or push us deeper into a recession.
Ben Bernanke has always had the monetary policy of printing your way out of trouble. This is causes many economists to doubt where the future of this country is headed. While it is true that you have to have money to make money, sometimes the United States needs to step back and let free markets work. For several months the Federal Reserve has created artificial mortgage rates by buying up mortgage backed securities along with other US debt; $260 BILLION in debt!
It will be very interesting to see what legacy, if any, that Bernanke leaves upon his final days as Fed chairman. He has been in control of the Federal Reserve Bank through one of the worst economic times in the history of the world. Will his actions help us to recover or will we see hyperinflation that pushes this economy into much worse shape? Only time will answer that question. One thing is certain, Mr. Bernanke is going to make sure that the mortgage rates forecast calls for lower mortgage rates each and every week.
If you have been debating on a home refinance, now might be the time to start doing some diligent research. There are many great Internet resources available and the best thing you can do is educate yourself on the process before diving in head first. If you do your research and you have made good financial decisions in the past, it is likely that you will be able to refinance at a rate near or below 5%.
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