Are Interest Rates Really Going To Rise? Experts Say "Yes!"

Consumers, mortgage lenders and real estate professionals are all wondering what will happen to interest rates now that the Tax Credit is expiring. Earlier this year many financial types said interest rates will definitely rise in the second half of 2010. So far this year the interest rates have been hovering around 5%, so will interest rates rise, and if so, how high will they go?

According to Ken Rosen, chair of the University of California Fisher Center for Real Estate, by keeping rates so low, “We are encouraging asset bubbles in the stock market, bond markets, and global real estate,” Rosen says. This Inman News article states interest rates will rise for the next 10 consecutive quarters and will be at an average of 5.8% by the 4Q of 2010.

Here is a very informative spreadsheet from the Mortgage Bankers Association showing the predicted rise in interest over the next 2 years. Spoiler alert - by 4Q of 2012 30-year fixed interest rates are predicted to be around 6.6%. Yikes!

So if you've been sitting on the fence, whether to refinance or buy a home, it might be time to jump off that fence and take advantage of the low interest rates while there's still time.

Man with Spinny Driving Wheel Camera Makes Good Sense

I could not agree more with this guy. I came across his video over on Inman.com. It has always amazed me how many agents - and companies - claim they are "numero uno". That's not to say they aren't telling the truth. But statistics can be manipulated to make them prove your own claims. Anyone can be No. 1 if you narrow the field down enough.

So just remember, you too can be the number one agent in Dallas!*

*sales between $451,000 and $452,000 on Northaven Rd. for the month of November 2009

Dallas Still One of The Strongest Metros in U.S. for Real Estate

Sixty-one percent (or 19) of the Top 31 "core based statistical areas" saw price declines from September 2006 to September 2007. Dallas was not one of these and rounded out the Top 10 major metros to see a rise in sales prices during this time period. Texas represented by having 4 out of the Top 10 cities to see price growth. Another reason why Texas is better than every other state.

Thanks to Top Producer for linking to the Inman News article that you would otherwise have to subscribe to.