If I had to pick the question that I am asked most, it would be an easy choice "what do you think the rates are going to do?" I get asked this question almost every time I do a loan at the point when the Borrower has to make the decision whether to lock the rate or float it.
My answer to this question is simple "if I new what the rates were going to do, I would be on a very warm sunny beach, without a care in the world". If I could predict whether the rates were going to go up or down, I would be a very, very wealthy man.
My second response to this question is "that what ever I tell them that I think the rates are going to do, they will most likely do the opposite". I have been wrong so many times about what direction the rates will go in, that it is not even funny. You would think that the law of averages would be on my side by now, but it is unbelievable how I still get it wrong.
Many men and women much smarter than I am have tried to predict what the interest rates are going to do. But guess what, they are right about as often as I am. Yet every time a well known Economist comes out with a prediction on what they feel the interest rates will do, many accept it as if it were gospel.
There is only one thing that I know for sure about interest rates, and that is that they will constantly change, and that the only sure interest rate is the one I have at that moment in time. Which leads me to the answer that I give for the question "should I lock the rate now or wait to see what they will do?"
My answer is again a very simple one, "I am not a gambler, so for me the best rate is the one I know for sure right now." I then leave it up to the Borrower to decide for themselves, and hope that they make the right decision.
So what do you think the interest rates are going to do? :) :) :)
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Info about the author:
George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
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McCue Mortgage is a Connecticut based Mortgage Co., that specializes in first time homebuyers. However, we are equipped to service all homebuyer with many loan programs such as FHA, VA, & CHFA.
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I agree with Charles. I think rates are heading up and that that's the only way to get people off the fence!
I'm with you on that George...if I could predict anything at all...I'd be rich lol. So, best bet is what I know to be true at this exact moment in time. And what it is right now is I'm done with my comment lol!
The rates are bound to go up. They have been so low for sooooo long.
I agree that rates will go up, and significantly, just not in the immediate future. The government is pulling out all the stops to keep rates down, but their efforts cannot hold back the flood indefinitely. The question of course is WHEN, and if I could answer that, I'd join you on the beach. My best guess is that rates won't change much for the remainder of this year, could even decline again, but by the middle of next year, we should see rates begin a long slow climb.
What goes up must come down and what goes down can't stay there forever. The rates have been artificially held down for a long time. I think they will probably stay low through Dec 1 for the first time homebuyer credit and then start the incline. Plus with all the money being printed, inflation is going to kick in and interest rates will have to be adjusted to control it. I don't think it's going to be pretty once it starts the up trail.
Charlie, I guess that would motivate them, but I would hate to see them go through the roof.
Donna, like I said to Charlie, it might motivate them, but I would hate to see that happen.
Sally some how I saw the ending to that comment coming ..... LOL
Monique, eventually they will, but I could handle them staying where they are for a little longer :)
John, if you join me on that beach bring me a drink and a snack ..... LOL
Michele, it will be fun to come back to this blog lets say 6 months from now and see how accurate people were in their predictions.
George, you are not serious, you had my kids lock in at the most fantastic rate I have ever seen on a purchase. I almost fell on the floor when I read the rate. 4.78 for a first time home buyer.
Now you are telling me you can't predict the future? And here I thought you were the man with all the answers.
Great post, and I bet you were really writing this with your laptop on that Caribbean Island you own...
I believe they will go up eventually; they have been low for awhile and we keep telling buyers now is the time to buy.
So what do you think the interest rates are going to do?
With all the money that's being printed, it seems inevitable that interest rates will go UP.
George - Wouldn't it be nice if we could all have that magic crystal ball to predict the future?
Andrea, now that will be our little secret ....... LOL
Pat, eventually they will, the trick is to be able to tell when they will do that.
Bruce I agree, but they have been predicting that they would go up for the last three to four years, and they still have not.
Donna, I would buy two of those balls if they existed :) :)
George - Interest rates? I think they are going to change.
Jeff
Jeff ......... LOL
You might be the only one that is right, "they are going to change." :)
George,
My crystal ball is out of commission so I have no idea. If it worked, I would have won the lottery and not be worried about these sort of things...;-)
Ann
Ann, if you win the lottery, I expect you to share some of it with me.
George,
I would be happy to share the fortune!
Ann
Ann ..... :) :) :)
George,
That is a question we mortgage guys hear all the time. I do exactly what you do because I don't know where they are going. Nobody does, actually.
Esko, unfortunately some do, and even more unfortunately some believe them :)