AROUND 4.25 PERCENT 30 YEAR MORTGAGE
RATES ARE PREDICTED FOR 2012

"Foreign investors trust the U.S. economy a little
more than their own, so they will continue to invest
in the U.S. economy. And next year is the election
so I don't think rates will go up before then", said
a prominent New York mortgage firm President.

"Being an election year there will be pressure on
the administration to keep rates low", he continued.
Eventually, if the market starts to recover, rates
might increase a little bit."

Recently released reports show glimpses of hope.
The National Association of Realtors index of pending
home sales increased 10.4 percent in October, better
than the 1.5 percent gain expected -- the biggest jump
since November 2010.

"If home sales hold up strong and the job market
improves, rates will eventually rise but they would
still remain attractive, especially when compared to
rates years ago.

"My parents paid 14 percent on their interest rate
in 1994 when they purchased their home in San Ramon --
so if people pay even 5 or 6 percent in the future it's not
a bad thing for the economy."

Irv