I wish I had a dollar for each time the question above has been asked of me in the past 45 days.  While no one, including myself, actually knows whether interest rates will go higher, lower, or remain the same, we can hypothesize from charts and the stream of consistent positive economic data that interest rates are more likely to remain at current levels or move higher.

 

Attached is a price chart of FNMA 4.50% MBS with a date range from February 2010 to February 2011.  Recall that as the price of a bond moves higher the yield will move lower, so with that in mind you can clearly see where prices reached their high point/yields there low point in early November 2010.  The far right hand side of the chart reflects the recent steep sell-off, or put another way, all of us mortgage folks jumping off the cliff.

 

A 30 year fixed rate loan at 4.875% or 5.00% is a great deal compared to mortgage rates over the past 50 years!

 

A person's greatest virtue is his ability to correct his mistakes and continually make a new person of himself.

 
This post has been included in California Real Estate News

2 Comments on Where are the interest rates headed

FEB
11
2011
186,702 Points 3 Featured Posts Outside Blog

Great information Alan, thank you for sharing this with the community.  It is always good to get this information out there.
2:22pm • #1
FEB
12
2011
262,790 Points Localism Sponsor

Hi Alan,

I red your email and I was about to call you and suggest that you post it but you beat me to it.

Thanks for the information.

Have a great weekend.
12:31am • #2


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Alan Sherman

Los Angeles, CA

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RPM Mortgage

Address: 23945 Calabasas Rd. Suite 213, Calabasas, Ca , 91302

Office Phone: (818) 876-7335 x 223

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