Many people are constantly trying to speculate about how high NJ mortgage interest rates will go. It seems right now, that mortgage rates in New Jersey have no tom, as they are lower than they ever have been before. Many people are even talking about how mortgage loan rates in NJ can go as low as 4%! That may be just what our economy needs to give it a kick in the butt. About one month ago, it seemed as though rates in New Jersey were definitely going to hit that 4% mark, but all of a sudden, they shot up to 5.5%, almost over night!
So how can we possibly predict the future of mortgage rates in this Garden State, when we have no clue as to what the Federal Reserve might do do next. I mean, we try to do as much research as possible, but nobody has a crystal ball to look into. To know where mortgage rates in NJ are going, one can only make the best educated guess possible. So, I am going to use some of my knowledge, to help you decide where mortgage rates might head in the near future, and also help you decide if you should do an NJ refinance NOW, or wait a few months.
The Fed keeps saying that New Jersey mortgage interest rates should remain unchanged between now and the rest of the year. I tend to believe this, as I see no major economic changes that will cause rates to go much lower, or shoot up way higher. In an already slow housing market, I feel that increasing the interest rates here will only further cripple our local economy, and postpone any recovery NJ may have in the future. Lower mortgage rates generally spur buying of homes in New Jersey for sale, or in this case, at least prevent the market from a total freeze over, if you know what I mean.
The biggest speculation about mortgage rates right now, seems to be inflation, and it's potential impact on the economy and our buying power. Generally, inflation causes higher mortgage interest rates, almost always. The reason for this, is that when prices of goods and services go up, the Fed actually raises the interest rates, to combat the high prices. However, I don't see this happening in the near future. I predict that interest rates will not go any lower, or higher, at least in 2009.
