December 3rd, 2009 7:01 PM by Eric Fang
Q: I heard somebody saying that the 30 yr fixed rate will go lower to 4.125%, what do you think?
A: Everybody likes to have lower interest rates. We had the interest 4.625%for only for a few hours(Monday Nov 30th). And it's still because of the Dubai news. I don't see the reasons for 4.125%. Show us the rate 4.5% first, even 4.625% rate is already at history low.
I like to know who is this "somebody". What's his reputation. Why and how we should trust that person? Is he from the Wall Street or the Main Street?
The rate will not go lower without the government support. The current lower interest rate is supported by the government's continuing purchase of MBS(mortgage backed security). When it ends, the rate will go up. And the plan is supposed to be ended the end of next march.