Sound Off: Do you expect interest rates to remain low for the foreseeable future? Why or why not?

Q:”Do you expect interest rates to remain low for the foreseeable future? Why or why not?“

A: Yes, I do feel interest rates will remain low for the foreseeable future.

There are multiple factors to consider, pandemic, unemployment and an upcoming election. As a result of COVID-19, the economy is suffering and it is important that interest rates remain low in order to help stimulate spending.

We have seen many buyers purchasing new homes as a result of low interest rates moving out of the cities and into the suburbs in an attempt to gain more space.

The other factor is the November 3rd, election, this historically has been a time where monetary policies don’t change. Neither candidate wants to make a policy change until they have their cabinet in place and can move forward systematically.

Unemployment rates have risen substantially, service industries are trying to make due with whatever business they can do under the county health guidelines and we are all adapting to the new normal. I wouldn’t expect any substantial changes until the second half of 2021.

Matt Heafey, the Grubb Co., 510-541-1754, heafey@grubbco.com.

A: Based on my conversations with lenders recently, I actually think that while interest rates will remain low in response to the struggling economy, mortgage rates will likely go up, due to the rush of new applications, the influx of refinance requests, and the increase in the risk for the banks overall as some mortgage holders will be unable to pay with the current economic hardships.

I think the mortgage rates we are seeing today will not last. Right now, is a great combination for buyers — the lower home prices, the super-low mortgage rates, and a high stock market. Therefore, while the home...