Interest rates are about to skyrocket, they cannot be held this artificially low forever. Well maybe the second part of that argument is true. But the interest rates are about to skyrocket, while it may be true, I wouldn’t go betting on it.
Today’s question was from a client who wanted to know if I thought interest rates were about to go through the roof as he heard on a talk show.
I remember hearing that in 2010. Then I heard it again from the so-called experts in 2011. Then I heard it again in 2012, and then again… well you get the point. Well over the last week the interest rates have taken a hit, and they are all the way up to the low 4’s again. Same place they were last September.
We can give you our best educated guess on the housing market. For example, I think the Chandler housing market is likely to have a 5-6% increase over the next year with the downtown area having a slightly bigger increase over the next couple of years.
I consider myself a Chandler expert, so while I believe I am probably accurate, there is no way I would bet the house on it.
Just like the stock market. No one knows for sure what will happen with the price of each stock. Yes interest rates are, and have been at a historic lows over the past 6-7 years, will they stay that way forever? Of course not. And while one day, one of these so-called experts will be right, they will only be right after being wrong multiple times over the last 3-4 years of predicting the same thing.
The thing I would be more concerned about as a buyer is the increase in home prices over the next year or two, not the increase in interest rates.
So, while everyone predicts doom and gloom, just remember that they have been predicting the same thing since at least 2011. And one day, one day sometime in the future, they will finally be right and you will hear them yelling from the rooftops, I told you so.