Where do you think mortgage rates will be in 18 months?

I%26#039;ll be buying another home in 18 months and I am curious what all you finance gurus think will happen to the market.

Do you think banks will be raising rates to recover their losses due to the sub-prime problems.

Where do you think mortgage rates will be in 18 months?military loans

So many factors.... First the Feds;

They probably won%26#039;t raise rates (they have toned down the inflation talk) but they are going to try not to lower rates either because they are more interested in shoring up the value of US assets held overseas to discourage a possible currency dump in Asia.

Second, the banks;

Could go either way. They may push rates down to encourage more mortgage activity and to try to return credit to an even keel but they may also raise rates because credit requirements are tightening and the market for loan products has shrunk.

My best guess... 30 year rates will not go higher than 7.25% average and not lower than 6% average.

Lastly, homes should be a long term investment not a quick flip... that is what messed up the market (and easy credit) now. Whatever you get in 18 months it will be balanced by the price of housing. The housing and mortgage markets will normalize in the next 12-20 months.

Where do you think mortgage rates will be in 18 months?

loan

yes|||Banks don%26#039;t raise rates on one product to make up for the failure of another.

Depending on the type of loan you are planning on getting will determine your answer.

The average rate on a 30 year fixed conforming mortgage is about 6.38%... these rates are expected to stay stable or go down in the next 18 months due to the relatively low risk and good performance of the product.

if you are looking for anything like an ARM or Interest Only or you have shaky credit, unprovable income or other 1 off circumstances, rates will rise considerably due to the fact that all of these products have not been performing very well and banks have to entice investors with higher rates of return in order for people to fund them.

Any reason why you can%26#039;t buy a house now?|||Read this report:

http://www.dynamictraders.com/images/Spe...