Low Annual Percentage Rates on Mortgages, Loans and Credit Cards Over?

Posted on | December 28, 2009 | No Comments

Low annual percentage rates on mortgages, loans and credit cards could likely be over.  Today we heard from a Morgan Stanley cheif economist who feels that treasury yields are likely to move up 40% which will send the 30 year fixed mortgage rate all the way up to 7.5% to 8%.  This is also going to push interest rates on loans and credit cards much higher as well.  This comes on the heels of the credit card bill of rights that is likely to encourage credit card companies to push rates higher before February 2010.


If you have been looking to get a low annual percentage rate on your mortgage or loan then now might be the best time to get it done before we start seeing interest rates move much higher.  The Federal Reserve Bank is going to stop buying mortgage backed securities at the end of March which means mortgage rates are likely to move up .5% to 1% at that time.  Who knows how much they will have moved up prior to the conclusion of that program.

The Fed has injected billions of dollars into the economy and we are about to find out just what that does to interest rates and inflation.  Sadly, all of the hard work that has been done to build the economy up might be the exact reason it gets torn right back down.  With that in mind, you might want to think about submitting that mortgage application today.

Author: Jesse Wojdylo

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