Still Low (For Now)
That’s based on a number of potent economic factors:
–Trillions in economic stimulus pumped into the economy by the Fed and its potentially inflationary impact;
–The dire status of Fannie Mae and Freddie Mac — the sources of liquidity to the housing market at the moment;
–The withdrawal of both direct (tax incentives) and indirect government support to the housing market (like the Fed’s purchase of $1.25 trillion in mortgage-backed securities, which stopped in March).
And yet, mortgage rates have stayed low — and now, jumbo rates are coming down, too.
You’d certainly guess that by now, many (most?) consumers take perpetually low interest rates for granted.
I’m not forecasting an imminent spike.
But we all know what happens in other markets (like stocks) when investors get complacent . . .