Question by Lepke: Will 30 year fixed rate mortgage rates ever go down?
Everybody keeps saying that the economy needs a jump start – well, I am certainly willing to do my part and spend more once I have refinanced my current mortgage. However, it seems like the 30 year fixed rates continue to hover around 6-6.25%. Is there any reason to believe that these rates will fall?
Answer by glenn
Just like everything else they will go down and they will go up. I have been in real estate 30 years and seen a lot of things happen that “everyone” said would never happen.
A practical answer to the question I think you are asking is that I do not believe that mortgage rates will be much lower anytime soon, they might be higher within the next year. Investors that provide the money for 30 year mortgages are worried that inflation is coming back and they are reluctant to commit to low rates.
What do you think? Answer below!