Real Estate in 2009: Real Estate Values & Interest Rates
Here is a forecast from www.mortgagemarketguide.com. “On housing, we see 2009 as a period of price stabilization for most markets. One good gauge that home prices are stabilizing in your area is to figure a monthly payment with 20% down and compare that to rents for the same property. If it would actually be cheaper to purchase the home than to rent it – that’s a good sign.
Mortgage Rate Forecast …How low can they go?
Early 2009 could very well mark the lowest rates that we will see for the rest of our lives. Think about that. More importantly, your customers should be thinking about that too. We expect interest rates to stay in a range of 4.5 – 5.5%, with the potential to see rates moving toward the higher part of the range later in the year.”
I believe they hit it right on the nose. Only time will tell.