Mortgage Rates Historic Jump to the Moon

[Caroline Gerardo]

Rates directly relate to the loan amount. Non owner rates jumped more than 1.5 this past week.

I expect to see 6% in June. I do not think this will increase the number of listings. I do not think it

will slow down appreciation, yet.

What does your crystal ball say?

[Jim Paulson]

I am a Realtor in Boise, Idaho.  I expect the interest rate increases to slow our appreciation rates to a more modest 3% a year or so.  However, it is still all about supply and demand.  If people keep moving here faster than we can build homes, prices will continue to increase.

I expect the mortgage companies to buy a clue from the auto companies and stretch out the term to 40 years. It has been static on FHA loans for about 70 years at 30 year mortgages being the norm. However, car loans went from 2-3 year payoffs, to 4, then five, then seven and now up to eight years!