August 21st, 2011 12:29 AM by Eric Fang
This Thursday, Bill Gross from PIMCO suggested that the us may head to another recession. Personally, the possibility is over 75%.
For my blog readers, you guys are more interestedin the mortgage rates. Do you remember that two yearsago I mentioned 4% interest rate for 30 yr fixed,a lot of people though it's unbelievable. But it hitthat rates a few times now.
And today, I had an alumni reader asked my opinion about the rates again. Here is what I thought:1)30 yr fixed rate will go below 4.0%.2)15 Yr fixed rate will be around 3.0%.3)Those who refinanced to 5/1ARM may consider to change back to fixed again because the fixed rateis so low and close to 5/1ARM rates.
Did you guys remember in 2007, for about two months,5/1 ARM rate is very close to 30 yr fixed rate. And wewent to the recession. One of the worst ones.
And recently, ARM rates head higher, fixed goes lower.Will the history repeat itself? Will we have another recession? And will my predict be correct again?
I don't suggest you guys to wait. The current level is very good. And you will be more comfortable to refiat this level to wait for lower rates, if any.
Even for this prediction happens, it will be a few monthsaway.