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Mortgage Rates Projected to Hit 5 Year High This Week

By
Mortgage and Lending with Mortgage Financial Group, Inc (NMLS 219650) NMLS #359029

This week it is projected that mortgage rates will reach a 5 year record high. Thanks to declining markets, credit lending guidelines tightening down, banks going out of business or merging to avoid bankruptcy, and many other economic factors, potential homeowners will now be facing an even more difficult time in trying to qualify for a new home due to the sharp an sudden increase in mortgage loan interest rates.

Just last week, mortgage loan rates were in the 4-5% range. But by the end of this week, mortgage rates could be as high as 7-8%. Those people who were waiting for the right time to buy have missed that ship, as it set sail last week. The great deals of low priced houses and low rates, may never be seen again in our life time. Those who jumped on the golden opportunity have the potential of turning their gold into platinum, while those who procrastinated will struggle to even purchase cardboard box big enough to cover them from head to toe.

But in all this bad news, there is good news!!! What you have already read has not happened yet. Rates are still at all time lows. They are still in 4-5% range. There are still some 100% mortgage financing programs out there. Banks are still lending money. And homes are still being purchased at great prices. Don’t wait till the title becomes a reality.

Call your realtor today to find a deal, I mean home, that is right for you. And call us today, to get your financing in place and your rate locked in before they really do go back up. Time is not on your side

 

The following has been added after the initial posting due to some confussion about what they read (or did not read).

*** And just in case you did not fully understand, RATES are not at 7-8%.  I have no idea when they will go up to 7-8%.  Could they go up to 7-8%?  YES!!! Could it be next week?  I highly doubt it, but who really knows?  I just wanted you to think about the future in that your hopes of things getting better and then you buy, could go the other direction.

Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

I had not heard they were going to rise.

Apr 27, 2009 01:26 AM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

I disagree with you. There is absolutely no indication that rates will rise in the near future. In the long run, rates will probably rise to above 7%. But for the short term, there are too many incentives (think government purchase of loans) to have rates rise that much. I expect interest rates to stay below 5% for a 30 year conforming fixed for most of this year. Rates will rise when the economy improves. Thanks!

Apr 27, 2009 02:04 AM
Marc Blasi
Palm Beach Gardens, FL

Come on Guys -

This is a perfect example of commenting before reading the entire post!

Apr 27, 2009 04:17 AM
Jason Price
Mortgage Financial Group, Inc (NMLS 219650) - Tavares, FL
The Mortgage Rider

Jim and Paul - Please feel free to re-read the post, especially the third paragraph were it cleary states that the previous 2 paragraphs are bogus.  I wrote this post to catch the eyes of borrowers and to let them know that the low rates that we are seeing won't stay around forever and to stop waiting for a better deal.  Time is ticking on these great deals, and if they wait too long, then they could see rates go up just like the first part of the blog states.

Apr 27, 2009 04:39 AM
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Specialist - Agent

*sigh* Now I will just wrap up the last of the words that *I* need to get my twenty five points.  Thank you. :)

Apr 27, 2009 06:17 AM
Eileen Musser
no longer in real estate - York, PA
EX Realtor

I don't appreciate your tactics!!

 

My guess is that others feel the same.  Fortunately I never have to consider whether to use your services.

Apr 27, 2009 07:46 AM
Jason Price
Mortgage Financial Group, Inc (NMLS 219650) - Tavares, FL
The Mortgage Rider
Eileen - It saddens me that you do not like my way of telling people that interest rates could and will eventually go up. Too many people are taking the current market for granted and are holding off hoping to get a possible .125 % of a lower rate or save an extra $10,000 on a purchase price. No one is thinking that rates go the other direction. And as for not wanting to use me, makes me wonder who you would use when all I am trying to do is make people open their eyes and see want they don't want to see. One would call this full disclosure in my book - telling people both the pros and CONS of a decision.
Apr 27, 2009 08:51 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jason, rates have been low for so long now that people are taking them for granted, and keep on holding off in hope that they will go lower.  The truth of the matter is, that what comes down will one day also go up.  Why risk them going up as you say when we have a great deal right now.

Apr 27, 2009 12:20 PM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

I apologize for looking over the Blog quickly.  I am in the camp of those that believe that rates will start to rise dramatically to entice investors back into Treasury's to pay for all these bailout monies.

Apr 27, 2009 02:35 PM