pay your mortgage in 5 years

pay your mortgage in 5 years
mortgage rates have a lot to do with how well the economy performs. If mortgage rates rise, people can not afford more money in new properties. That is, of course, brings a slowdown in construction and it also means that less money flow is determined by the economy.

On the other hand, if mortgage rates go, more people are able to buy homes. The prices fall further below, the lower the profit and loss account for the homes for sale. When homes are bought, the building trade is thriving, and this promotes the economy in many ways.

Remember, high interest rates?

It is 20 years since we've seen double-digit mortgage rates. Back to the late 70s and early 80s, the double-digit mortgage rates were the norm. It was not until around 1985 following the Reagan administration had put an end to stagflation and the misery that the index Haunted Carter years, the mortgage found buoyancy at approximately 7%.

Since that time, mortgage rates have fluctuated between 9% and 5.5%. All in all it was a long stable interest rates, which we have enjoyed over these last years.

Higher or lower?

Now the question arises, what are the interest rates go from here. By reading the graphs, we will try to predict the future, as if we are reading articles charts a handle on how the price of soybeans were top. Then we will order a prediction about another product, you are sure to be shocking!

At this point, it is recommended that a disclaimer. Firstly, you really can not predict the future and, secondly, all the world event, which the future looks like now in a heartbeat. You also can not overlook the fact that unforeseen world events can happen out of the blue. With that behind us, let us take a look at charts.

The past 18 years

During the 90s, the interest on 30-year fixed mortgage of between 9% and 7%. At the time George W. Bush in office, the average 30-year mortgage was 8.75%. From here, they facilitated steadily down through the first term of office, George W. Bush. It actually hit a low of 4.75% at the end of 2003. Here, the interest rates between 6.5% and 5.5% for the next 3 years. This was an unusually stable interest rate environment, and it was one of the reasons the housing market to Red Hot, and yes, overbought.

In 2006, the trend is broken on 5.5% to about 6.5% but never higher rates. Well, the interest rates are hovering around six percent and trends.

Reading the Charts

The technical trader, that is, those who trade in goods reading charts, would certainly believe interest rates as they go down, would once again test the low of 4.75%. It is important to see if a double bottom is at 4.75%. If this soil is, the interest rates upwards.

Because of the underlying fundamentals of the market, for example, the Fed try to lower interest rates to stimulate the housing market, it seems much more likely to break 4.75% interest rates lower, when they arrive there. If they do, a new downward trend is on its way. How much lower interest rates could be anyone's guess. But it is certainly not out of the question, which we could see 4% 30-year fixed mortgage interest rates sometime before this downward trend will end.

4%!

Historically, 4% is a very low interest rates, but at this time it really looks like we are much more likely to see 4% on a higher number, such as 7%. So what's it worth, that is my prediction. We will see the interest rate on a fixed 30-year mortgage after somewhere around 4% before an inflationary aspect of the economy over.

Where you think that this aspect of inflationary pressure will come? Well, here is another prediction, and you find it surprising when the first!

The impossible dream

It is for the oil rally. Crude oil is overbought! There is no reason for crude oil trading above 100 U.S. dollars per barrel. As the tech-stock boom of the'90s and the housing bubble a few years, it is a rally that can not be maintained forever!

It is anybody's guess what the true market value of crude oil is now. But to think it is somewhere between $ 50 and $ 60 per barrel would be logical. However, if prices fall they are usually determined by the actual value, before they float back to them.

When this crude oil market burst follows the same modus operandi normal market bubble bursts follow, I can not see why it is impossible to see $ 35 per barrel oil again, at least for a little while.

What would the price of gas? Maybe $ 1.49 per gallon? Well this might be completely out Whack with what we hear constantly from our reports day and night, do not believe that it can not happen.

Back to reality

Surely there will be a time when $ 100 will not be too high a price for a barrel of crude oil. There comes a time when $ 3.50 is not too much for one gallons of gas. But the charts are telling us that time is still not there.

So, cheap gas, like JFK, Ronald Reagan and George W. Bush tax cuts will stimulate the economy, Bill Clinton and how collective agreements, it will be the cost of living is lower, so that more goods affordable to the public. These things, but healthy for the economy, on some of the inflation, and this will break the downward interest rate trend.

I know these predictions seem pretty goofy, and maybe they are! However, my strategy is to think that it happens, and if they do not, at least I like to believe it for now. Then again, if they happen, we will all be happy!

Author, Ed Lathrop has single-computer, which is an online financial calculator shows you how to save 100,000 U.S. dollars on your mortgage and "How To Pay Off Your Credit Car Debt Quick." "As well as many other computer, which helps people on their finances in order! Visit this website for free at: Free Financial Calculator. Also a free repayment plan, or how many free amortization schedules as you want: Free Amortization Schedule