Mortgage Blog

Personally, I think the rate will stay at this low level till summer of 2010. Fed will extend the purchase of MBS this fall and the interest rate will stay low until the real sign of economy recovery.

We will not have a good holiday sale with this high unemployment rate. The unemployment is 12.2% In California, the world's 8th economy. The recovery will have a long way to go. The best option for the Fed is wait and see. If the economy stay at this level, the interest rate will be at this level; if the holiday sale, the unemployment rate(or job market) is worse than expected, then we will see the new lows of the interest rates.

For most of us, though we like the low interest rates, we still hope the economy is not going worse.