bostonbubble.com

[JAP]

I just got off of the phone with my mortgage guy at Wells Fargo. He said rates have not been this low at Wells Fargo in the 10 years he has been doing mortgages there.

He said a big indicator of where rates will go will be to see what happens the first day back after Memorial Day (Tuesday). Last year he said the Tuesday after Memorial Day rates jumped a 3/4 of a point and every year they seem to make a big jump on that day.

IMO I don't see rates jumping at all throughout 2010. If they get to 5.7 it will be more than I would have thought. There are too many economical factors (domestic and international) that need time to be worked out before rates will see any consistent or steady increases to levels over 5.7 or so. This along with the majority of these shadow inventories held by banks are mostly in depressed areas or areas with very high unemployment. Neither of those two descriptions covers the vast majority of Boston area or areas where most of us on this forum would like to live. be prepared to keep seeing high priced real estate with little to no reductions in asking prices.