Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 13 years ago on . Most recent reply
US Credit Rating Downgraded: When will we see interest rates go up?
we were actually considering buying a house in the next few days and then I hear this on the news tonight. Are we not going to be able to get the good interest rates that we have been having recently? Or, when would that kick in likely?
Most Popular Reply
#4 Off Topic Contributor
- Investor
- Round Rock, TX
Interest rates are actually really low right now. I haven't been following things, but my guess is that many of the MBS or CMBS are better risk/reward tradeoffs for fixed income investors right now than treasuries are. A lot of that money is probably "flying to safety" right now in blue chip corporate debt or MBS/CMBS.
It seems unclear which way MBS yields and thus borrowing costs will go in the short run. Today's conforming wholesale rates for 30-year money were 4.076%...even if there is a modest bump money is still free in real terms to me with the real CPI hovering around 6%ish according to Shadowstats.
I would be interested to know what lenders' lock policies are right now with all of the uncertainty. Is your lender offering a lock? If so, on what terms?