My feeling about this is that as long as there is no downpayment money for buyers and unemployment continues over 9 or 10 percent it is going to be very hard for feds to raise rates. Buyers who saved money and have great credit have the pick of the litter and can use it on sellers. What a get time for move up buyers. Of course it only my opinion.
I agree, the Feds will keeps rates at zero for a very long time. They have no choice. Raising rates will make our National Debt even more unmanageable.
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There are too many problems with the economy for the Fed to start raising rates. Although there is not a direct correlation between the Fed Rate and Mortgage rates, the same problems are keeping mortgage rates low. On May 21st. rates dropped to the lowest level since rates were actively tracked. That day, bonds reached 102.66. The market opened strongly again this morning and based on the strength of this morning’s trading, I expect a mid-day correction dropping rates lower. We have seen a high this morning of 102.78 and currently are at 102.69. Great news for buyers!
<!--EndFragment-->I think rates willl stay down for a year, but the government policies will see double digit rates again. We will never see these rates again, sorry to say!
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