July 30th, 2011 10:52 PM by Eric Fang
The fixed rate went down to the lowest level last Friday.And I got a lots of emails about the interest rate trends.
Though it seems like it's because of the uncertainty ofthe market from the debt ceiling, it's actually the economy.If you read the "small print" lines from the news, the economyfor the 2nd half of this year is not that good. For the most of the year 2010 and 1st half of 2011, the high tech sector is the only sector(at least the bay area) seesgood job market, but recently there are lots of bad newson the market: cisco's layoff 5k to 10k positions; HP is slowing as well. This is not good for the IT industry. And California is one of the bigest economy in usa, and the unemployment rate is still over 10%.
So let's back to the topic, how will the interest be goingfor the next a few months?A client asked me yesterday about 30 yr fixed high-balance rate for 4.375%(we did not havethis rate this year yet; and the history rate low ratewas 4.25% for last year). My answer is: we should be able to get 4.375% rate soon. It's still a long wayfor 4.25%, but the trend is on our side.
Let's wait and see. Have a good weekend.