It seems that they think that QE3 will push down mortgage rates, but it looks like QE2 got in the way – mortgage rates went down as soon as QE2 stopped on June 30, 2011:
It will always be a different time and place, so let’s face it, there are different parts of the puzzle now. The economy is heading downward, the hot election cycle is in full swing, there is plenty of uncertainty around the world, and mortgage rates are already about as low as they can go.
There might be some psychological boost to the real estate market if mortgage rates slip down into the low-3s. But willing buyers who venture out are going to see the same environment that we have had all year:
1. Supremely over-confident sellers trying to grab an extra 5% to 10% in price due to low inventory.
2. Listing agents who get too cocky just because they get a lot of phone calls on their new listing.
3. If you can manage to finally win a bidding war, complete your inspection and then find defects, expect that the sellers/listing agents won’t do anything for you – except rub your nose in the alleged backup offers.
4. And you end up with few other choices, other than to wait longer.
I’d like to see Ben and the boys do something about those!