The Upfront Mortgage Broker

The Truth About Mortgage Rate Predictions

Peaks, valleys and more peaks. While watching the stock market rise and fall like a heart beat, it’s important to remember that markets are not predictable and nobody knows what will happen tomorrow or later on this afternoon for that matter.

Unfortunately, this doesn’t stop the analysts from trying to predict the future. In my opinion, you might be better off with the “magic eight ball” as your source. In reality, the experts are going on a gut feeling.

Here’s an example of what I mean. Back in May of this year as the price of oil rose above $120 per barrel, one analyst was quoted saying that $200 oil was “likely”. At the time, this prediction seemed like a logical assumption.

But now, less than six months since the prediction, the analyst’s “likely” scenario looks like a joke. Oil is down by more than 40% since that day and nearly 60% off its all time high. You could also look at many other “forecasts” and see examples just like this. Oil graph courtesy of WRTG Economics.

Analysts and Experts try Predicting the Future

Every day on television and in the newspapers some economic experts and analysts tell us what’s going to happen in the future:

• They say when housing prices will reach the bottom
• They’ll say when stock markets will rebound
• They’ll even say what the economy will do over the next 12 months

I’ve been reading many articles by mortgage experts/analysts over the years. I’ve read recently where many mortgage analysts are predicting 7% interest rates within the next six months, this is in direct response to the governments bailout of the banking industry. Now this rate prediction may be accurate, or it may not. Obviously we’re not going to know for another six months. What I know today is that mortgage rates are up one minute and down the next — just like your pulse and nobody knows what they’ll do tomorrow.

Predicting the future has always been a stab in the dark to a certain degree but that hasn’t stopped the experts from trying. Let me tell you that the experts are wrong as often as anybody else.

The people best suited to helping you with interest rates are the Upfront Mortgage Brokers of which I am a charter member of the organization. UMB’s are on your side, they are working for you. As compared to traditional mortgage brokers who are in reality against you. Having a registered and knowledgeable upfront mortgage broker will save you thousands of dollars in interest not to mention less stress and anxiety regarding your loan.

If you have any questions about this post or need to talk about a specific situation, I encourage you to contact me today.

Respectfully,
Joe Bartolotta
The Florida Upfront Mortgage Broker
No Charge Mortgage Consultations
Residential, Commercial & Reverse Mortgages
Direct 407.340.0220
Joe (at) the upfront mortgage broker (dot) com