With a resesion looming/here, will the mortgage rates go up or down?

Some say because less will need it they will stay low even go lower. What do you think over the next 5 yrs?

With a resesion looming/here, will the mortgage rates go up or down?

The usual path out of a recession is to lower interest rates (federal reserve rate) to spur growth.

The federal reserve interest rate is NOT directly tied to mortgage rates (they usually trend with the 10-year bond), but they do follow the same GENERAL trend.

Unfortunately there are two problems with lowering rates to spur growth. One is rates are already relatively low (look at a 20 or 30 year chart to see what I mean). The second is the high price of oil. The high price is causing other prices to rise rapidly, causing inflation which is usually controlled by increasing interest rates. The fed a tough road to walk right now, balancing inflation fighting with need to stimulate growth.

Looking out 5 years it is difficult to see anything but higher (and possibly significantly) higher interest rates for mortgages (again, look at the historical trend right now, very low).

good luck!

With a resesion looming/here, will the mortgage rates go up or down?

I heard the fed may be lowering the rate again so rates will follow.

With a resesion looming/here, will the mortgage rates go up or down?

What the Fed does with short term interest rates has nothing to do with mortgage interest rates.

The Fed has lowered its discount rate twice recently and mortgage interest rates have gone up in the past weeks.