ZT---from Zillow.com advice
Will rates return after this 50 point bump we experienced in the past 72 hours?
Bumpy ride? Yes. Affects of QE2? Reasonably predictable, yet investors may still pull their money thinking Federal Reserves buying government bonds can only mean inflation which means loss of investment value.
Until the Federal Reserve starts QE2 and makes it clear what they are doing, the investors are causing market shifts anticipating the changes. Some investors may even be going to other currencies figuring that the government has set a path for devaluing the dollar.
I still say we will see the under 4% for 30 year fixed again within 6 months, and maybe even as low as 3.5% fixed for a short period sometime within the next 18 months. But as they say, rates usually rise a lot faster than they fall, and it is going to take some time to work its way back down again.
As for that 7% or higher interest? I still don't expect to see that within the next 3 years. After that, all bets are off. You can't take actions to devalue the dollar without it eventually catching up with you.
Will rates return after this 50 point bump we experienced in the past 72 hours?
Bumpy ride? Yes. Affects of QE2? Reasonably predictable, yet investors may still pull their money thinking Federal Reserves buying government bonds can only mean inflation which means loss of investment value.
Until the Federal Reserve starts QE2 and makes it clear what they are doing, the investors are causing market shifts anticipating the changes. Some investors may even be going to other currencies figuring that the government has set a path for devaluing the dollar.
I still say we will see the under 4% for 30 year fixed again within 6 months, and maybe even as low as 3.5% fixed for a short period sometime within the next 18 months. But as they say, rates usually rise a lot faster than they fall, and it is going to take some time to work its way back down again.
As for that 7% or higher interest? I still don't expect to see that within the next 3 years. After that, all bets are off. You can't take actions to devalue the dollar without it eventually catching up with you.
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