| Even the federal government and all governments in | | | | homes. It's like the merry go round of circle of loans. |
| the major world economies are bailing out their ailing | | | | These two financial giants own or insure almost half |
| financial companies it won't be enough as we can see | | | | of the nation's total which around five trillion dollars. |
| right now. Thus it is very hard to make mortgage | | | | Because of this the whole world is watching them |
| rates predictions. Mortgage and the housing industry | | | | very carefully as to how they will manage through |
| is in uncharted territory. You can make your own | | | | rough economic times. And more than ever the US |
| projections or predictions as to where the mortgage | | | | government is closely watching them. Most US |
| rates are going but still won't make sense a few | | | | government experts and leaders believe that these |
| weeks or months from now. Mortgage rates | | | | two behemoths will soon collapse or is bound for |
| predictions are one of the hardest things to predict | | | | failure. So the government stepped in and save what |
| especially with the conflicting signals the economist | | | | could have brought more economic and financial |
| are seeing. | | | | trouble to the US and the rest of the world. |
| Government intervention has made our traditional | | | | But as you can see, even with the intervention and |
| mortgage rate forecasters like newbies in this new | | | | bail outs being done by the US and government and |
| era of mortgages and rate projections. It is | | | | other countries doing the same, mortgage rates are |
| extremely difficult to predict where interest rates are | | | | still falling. Because of these bail outs and government |
| going. People made a living trying to predict where | | | | interventions, it artificially looks good for the buyers |
| interest rate will go but nowadays it's the same as it | | | | because you can so many homes for sale and are |
| used to be. The models and the basis for calculations | | | | cheap. Some even juice it up by giving a lot of |
| are no longer applicable as government intervention | | | | incentives. But some people are still worried they |
| and bail outs played a role in determining the | | | | may not last very long. |
| outcome of rates. | | | | I do not blame those people who worried about |
| For instance the financial giants Fannie Mae and | | | | buying cheap house for sale right now. The mortgage |
| Freddie Mac which are publicly owned financial | | | | and housing industry is in uncharted territory. Never |
| companies; both companies work behind the scenes | | | | that these kind of things happen to the financial |
| in the mortgage industry. They buy and package | | | | sector and al the experts are scrambling to find |
| home loans and then sell them to investors in Wall | | | | solutions and ways of making the right mortgage |
| Street and around the world. But the thing with | | | | rates predictions. To make mortgage rates |
| these two companies is that you cannot buy directly | | | | predictions now is like playing the Russian roulette. No |
| from them. They only buy from mortgage originating | | | | one has the right answer because there is established |
| banks and lenders. This was a great idea because by | | | | pattern of how the markets and interest rates will |
| buying the loans they free up money for lenders to | | | | go. |
| write more mortgage and more homebuyers into | | | | |