Monday Musings...interest rates?

About three weeks ago we saw interest rates hit as low as 5.3. As of Friday morning they were at 6.125. That is quite a change in just a few weeks. When the rates hit 5.3 I asked some lenders what they felt the rates would do and although they wished they could really figure it out, they thought they would not drop much more and would start increasing. Here we are today with rates almost 1 percentage higher, so their 'gut' feelings were correct. I am interested to find out what this week holds as far as interest rates.

Any predictions on the short-term and long-term interest rates? If so, leave your comments here! I would love to see what others are thinking.

Posted Monday Feb 18

(02/18/08 07:42PM) — Fairbanks Real Estate Broker Jesse Clifton

Well, that's a hard prediction to make. The FED has been pouring money into the market through short term auctions in an effort to motivate lenders to initiate more lender to lender loans but they are not budging and now the FED is actually pulling money back out of the market. Given the challenges of the credit markets and Bernake's unwillingness (or inability) to control the credit markets I'm willing to bet the FED will continue to cut rates... whether that will translate to lower mortgage rates will depend on a number of things; investor confidence in MBS's, the implementation of the changes at Fannie/Freddie/Ginnie and whether the big players in the financial market can survive the onslaught of foreclosures. I think there's an answer in there somewhere but in case I bored you to tears... I think they will hover around the 6% mark.

(02/21/08 04:10AM) — Kris Wales-Macomb County MI Real estate

Hello Dodi, I found your blog via Jesse and Kathy Clifton. I just wanted to stop and say "Welcome to ActiveRain!"

I hope you enjoy it as much as I have. I look forward to getting to know you!

(02/21/08 04:42AM) — Susie Blackmon-Maggie Valley Waynesville NC Realtor/RE Blogger/Photographer

Hi Dodi, and Welcome! Here's a great guy to watch regarding interest rates right here on Active Rain:

Ed Nailor

All the best!

(02/21/08 06:33AM) — Crossville Real Estate & Community Blog Christina Williams

Welcome to AR.

(02/21/08 06:06PM) — Kelsie Compton, Cary NC Real Estate

Dody - Welcome to Active Rain - Jesse wrote a wonderful introduction!

Best Wishes,

Kelsie
www.TriangleChoiceRealty.com