I wanted to ask people out there whether they feel interest rates are going to stay around 5% or rise? I have had so many of my buyers get great interest rates with FHA loans. It just amazes me how long they have stayed low. If you listen to all the lenders ho are advertising they are saying to take adavantage of these “All Time Low Rates”, because they will not be here long. When I heard this again today on the radio, I thought to myself, who knows? I think you have to listen to the economists to understand.
I think for the rates to rise the Obama adminstration needs to be worried about inflation. However some economist, “moringstar analyist” are saying we are looking at a Double Dip. This means that we are going to see home prices fall again, because the current adminstration has not been able to create enough jobs to prevent the double dip. There is not enough income to support any price increases.
Anybody have any comments on what you think the interest rates will do? Just a real estate agent trying to better prepare my clients for the future.