Finance, Forex and Investments

Will interest rates on mortgages start to go up?

With interest rates at an all time low, do you think they will start to go up or down. And please expalin why.

Public Comments

1. down, depression
2. Not yet. Not until the mortgage industry stabilizes and stocks rise. The mortgage and stock markets influence one another. When the cost of stocks and bonds are up the , mortgage rates decrease and the opposite is true. We could begin to see the stock market recover within the next 6 months to year which in turn will raise interest rates. However, due to the mortgage meltdown, in order to recover the housing market, the Feds will have to keep the rates down a tad bit longer as an incentive until the foreclosures are bought and banks are lending more. Only then will rates increase.