Opinions on interest rates in the future? Thank you

lightspeed

A lot of mortgage deals are offering relatively low rates at present (e.g typically 4 - 5%) For those of us planning on getting a mortgage soon,what is the likelihood that in a few years time these rates will increase and increase dramatically?

If so, any opinions on by how much?

Ian_W

TBH a futile question, IMO. The "experts" get it wrong on short term predictions, eg early 2005 many/most were predicting rising rates and IR to be between 5-6% by the end of 2006. Interest rates were subsequently reduced by 0.25%. By late 2005 many of the same experts were predicting IR cuts early in 2006 and as we approach April there has been no downward movement. _pale_

There are too many variables both with our economy and internationally to predict IRs with any degree of certainty. All you can say is that historically we are enjoying a prolonged period of lower than average interest rates. Whether that will continue cannot be forecast with even the slightest degree of certainty.

As my old mum used to say, Opinions are like @rseholes - everybody's got one! - she's cleaned up her act a lot since then. Anyone's opinion is at best a guess, so why not trust your own guess?