I am curious to find out the combine opinion of Active Rainers, will we see interest rates for 30 years fixed as low as 3-1/2% or 4%? I think having interest rate so low will jump start the housing and the economy in general.
With this interest rate, housing will be affordable again for so many more people, the housing prices will stop falling and may be even grow again. People will refinance like there is no tomorrow and all that activity will pump money in to economy.
With mortgage payment reduced, people will have money left and will start buying again. Cars, toys, electronics etc. Builders will start hiring and building again. The same for remodelers, people will start projects they have on hold for a long time. The consumer confidence will grow and we will get back on tracks.
So, what do you think? Is 3-1/2% realistic, or just a dream?