Friday, February 1, 2013

Forecast that 30 year mortgage rates will rise in 2013

The reason I believe that demand is going to keep on coming very strong is a look at mortgage rates.  We are now going back two years on interest rates and we can see almost every single week - because this is a weekly look - it is a little lower than it was the week before.  It seems like we are bottoming out right now at that approximately 3.5%  And there are projections, which I will talk about tomorrow that interest rates might tick up, inch up over the next year through 2013.
But right now there is a demand there.  Home affordability, prices verses interest rate is really in a beautiful place for people.   You can see that prices, whether it be the ten-city composite or the twenty-city composite, are bouncing - bouncing along the bottom there.  They are no longer in free fall.  Again, I think in most of the country right now, we are going to see some nice price appreciation over the next year.  We will get to that latter.

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