2012 Mortgage Interest Rate Prediction

Mortgage and Lending with Mortgages Unlimited, Inc NMLS 274132

ST PAUL, MN: As the new year begins, there are no shortage of so called “experts” telling us what to expect for mortgage interest rates in 2012.  Mortgage interest rates closed out 2011 at some of the the lowest rates of all time. Some expect those interest rate trends to continue through the first quarter and beyond. Others expect a rapid increase in mortgage rates.

Who’s right and who’s wrong? A quick look through the newspapers, websites and business television programs reveals “experts” with opposing, well-delivered views. It’s tough to know who to believe.

For example, here are some predictions for 2012 :

  • Home prices will rise in 2012 (Freddie Mac)
  • Home prices will fall in 2012 (CBS News)
  • Mortgage rates will rise in 2012 (American Banker)
  • Mortgage rates will fall in 2012 (LA Times)

The issue for buyers, seller, and those wishing to refinance their existing mortgage loans in Minnesota and nationwide is that for many people, it can be a challenge to separate a prediction from fact.

When an argument is made on the pages of a respected newspaper or website, or is presented on some financial cable show by a well-dressed, well-spoken talking head, we’re inclined to believe what we read and hear. This is human nature. However, we must force ourselves to remember that any analysis about the future — whether it’s housing-related, mortgage-related, or something else — are based on a combination of past events and personal opinion.

Remember, predictions are simply guesses about what might come next, nothing more.

I am constantly amazed to hear politians, reporters, and other “so called experts” who have never written a mortgage loan ever in their life tell me how things work in the mortgage business. More annoying yet, is that are a lot these are the same people who makes the laws!

DON’T HOLD OFF buying a new home or refinancing your existing home because some “expert” says interest rates may drop sometime in the future. Mortgage interest rates are CURRENTLY at all time historic lows. Forget the experts! Jump in today, take the deal, and smile!




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Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi Joe,

Interesting links, I'll check-em out, thanks. Btw, I'm one of those r.e. geezers who well remembers the high rates of the early 80's.

You are absolutely correct about: "Remember, predictions are simply guesses about what might come next, nothing more. "

Jan 07, 2012 02:09 AM #1
Susan Jackson
America's Network Realty Group, Inc - Sandy Springs, GA

Prospective buyers need to move ahead based on their financial position, not what all the experts are saying, when it comes to the closing table the experts are not there to pay then or pay in the future. 


Jan 07, 2012 02:25 AM #2
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

Joe, one thingis for sure, the window for the best deals is slowly closing and those that sit and wait are going to lose out if they wait much longer!

Jan 08, 2012 09:47 AM #3
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