April 5th, 2011 9:09 AM by Eric Fang
I believe the rate prediction for the past 3 monthswas on the track. I predicted the ARM rates willreach 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 marketbecause the jobs created not enough.5)There are no move-up buyers since the house valueheading lower. And we all know lots of peopleget the down payment fromm the sale of the current residence.