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Watch Mortgage Interest Rates

By David Wiggins

Managing Real Estate Broker with Allison James Estates and Homes

February 06, 2009 03:42 AM

I thought we might just pay attention to mortgage interest rates if the Government's giant stimulous package passes. I have not heard anyting about it but I do know the more Uncle Sam competes in the market for $$$, the higher interest rates will go. I think real estate sales will suffer if we see mortgage interest rates go over 7.5% per annum. Now 7.5% rates uses to be considered creme de la creme in the 1990's but sound high in today's market.

If you get a chance, post your opinions and comments.

Dave

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Richard Dolbeare

Inactive - Wailuku, HI

Living the Hawaii Lifestyle

Hi David. We all have our own benchmarks for an acceptable mortgage rate. Mine happens to be 8.0% which is what was in effect when I was looking to buy my first home. They doubled after that and then were nearly halved at the lowest point. I would imagine that each of us have a different reference point at what is "acceptable".

Feb 06, 2009 03:50 AM

John Mulkey

TheHousingGuru.com - Waleska, GA

Housing Guru

I agree that the government's borrowing to pay for the stimulus will have long-term effects on interest rates, but I'm sure they will come up with a temporary solution to try to stimulate the housing market. Unfortunately, I don't believe either measure will be good or effective in the long run. We can't borrow ourselves into prosperity, and we can't restore the economy by implementing the same programs--more affordable housing--that created the problem in the first place.

Feb 06, 2009 04:35 AM