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):
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…