Mortgage Blog

I believe the rate prediction for the past 3 months
was on the track. I predicted the ARM rates will
reach history low, and 30 yr fixed rate will be
lower but not that significant lower.

For the house value, I predicted it will go lower.
And it did go lower in most of the California area.

For the next 3 months, the rate will be stuck in
the current trading range. There are almost only 5%
chance of going lower from the current level.

The stock market will go higher. That's good for most
of us. But I don't know how much higher it will go
from the current level.

But the house value may go even lower.

A lot of people asked me why?

Here is my 2 cents.
1)There are still plenty of foreclosue on the market.
2)Lots of investors already purchased 2 or more
rental propeties. Lots of them do not have much
cash left.
3)It's hard for the loans approved if you already
have more than 4 financed properties.
4)There are not much first time buyers on the market
because the jobs created not enough.
5)There are no move-up buyers since the house value
heading lower. And we all know lots of people
get the down payment fromm the sale of the current
residence.