Mortgage Blog

It's end of the year. And lots of analyst started predictions.
Here is the Outlook of 2011 from Daniel Gross on Yahoo.
One interesting thing from the article is: "predicting the
future is no easy feat". I totally agreed with this one.

For the interest rate(30 yr fixed no cost), the rate went up
from 4% to 5.25% within 45 days. For the past a few weeks,
it's back to 4.75% level now. It's like any other trades,
the rate would "shoot up" and "crawl back down". So we will
see a lot of see-sawing at the current level. That's what
happening now. The bond market sold off yesterday when the
bond auction did not do well; and today, the bond sale
is so well that it re-coup all the loss of yesterday.

The year of 2011 will be very volatile both for the stocks
and bonds. So the interest rate will go up and down.
But it will create lots of opportunity for your investment.

In Jan 2011, we may see 30 yr fixed 4.5% to 4.625%;
15 Yr fixed 3.875% to 4%.