Which Way Mortgage Rates?

According to a certain (contrarian) school of thought, whatever everyone expects to happen . . . won’t.

In the housing market, there seems to be almost universal agreement at the moment that mortgage rates are going to be higher — perhaps dramatically — in the second half of 2010 and beyond.

That’s based on: 1) the expectation that the Federal Reserve will be removing the foot it has had firmly planted on the mortgage market “scales” the last year, as it purchased $1.2 trillion of mortgage securities on the open market; and 2) concerns about excessive liquidity — courtesy of the Federal Reserve again — reviving inflation.

Is everybody wrong?

It wouldn’t be the first time . . . (and if they are, you’d guess that Nov. elections might have something to do with it).
About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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