On real estate and interest rates

A question from Askville:

What’s the impact of the Fed’s $500B bailout on real estate and interest rate?

Will my mortgage interest rate drop dramatically in the next few months? (Planning to sell and trade up a bigger home for investment….)

Real estate prices, in spite of the recent drop, are still way out of line with both incomes and rents. As to mortgage interest rate, here’s a long-term picture for you to ponder (this is conventional mortgage rate as reported by Federal Reserve):

Mortgage Rates

As you can see, the current interest rates are still close to historic lows, so I wouldn’t expect a dramatic drop any time soon…

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