Sunday, April 29, 2012

Mortgage Rate Trends in Los Angeles According to Mortage Expert

Both government rules and free markets tend to overreact to crisis, and nowhere has this been more true than the mortgage market meltdown of 2008.  From the freewheeling, no-proof-of-credit-worthiness times we thought we enjoyed in the first decade of this century, we have now cycled into a climate where the mortgage market is tighter than anyone can remember.  It is very unlikely that this tightness will persist.  As demand increases, there will be those lenders who will want to take advantage of better times.

Interest rates are at lows that no one would have predicted, but only because of low demand and Fed intervention.  The Fed is already discussing the timing of when this intervention will end, and any uptick in demand is likely to result in upward pressure on rates.  There is no precedent or imaginable scenario for rates to drop significantly below what they are today.  Could that happen.  Sure, but the odds are way more likely that rates will go up significantly than down at all.

For more on the subject or to discuss how you can lock in the historically low mortage rates in Los Angeles at this time, call Bill Rayman at 310-295-2900 ext 113