Mortgage rates prediction after bail out?

**dasanii19** · 09-26-2008, 11:14 PM

Any body have a prediction on what the mortgage rates are going to do after the bail out? Go up? or go down? Ive been hearing they will go down which is good for me because im waiting on locking a rate in soon.

**jamesww** · 09-27-2008, 09:11 PM

Originally Posted by dasanii19

Any body have a prediction on what the mortgage rates are going to do after the bail out? Go up? or go down? Ive been hearing they will go down which is good for me because im waiting on locking a rate in soon.

Whether real estate rates wil go up or go down are going to depend on what the economic idicators are at the time of the bail out. If unemployment increases, the job numbers show a decline and the core inflation numbers are stable or decline the housing bail out bill being passed would lower interest rates. If there are suprisingly positive economic numbers and the bill is passed then we will see interest rates rise.

Mortgages are considered long term interest rates and the risk of inflation causes long term interest rates to rise. If inflation looks unrealistic or seems like it will decrease then long term interest rates will decline.