Prime Rate...Is it going up or down?

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Brightwaterhelp_IHB

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I've been offered a loan on a super jumbo at prime minus .75. This obviously makes me think because my rate would be 4.25 at this point...but my concern is the direction of prime in the foreseeable future. I was offered 7.875 for a 30 year fixed so if i went with the first offer prime would have to jump to 8.625 for me to start being concerned.



Any thoughts on a loan like this?? I figured i can enjoy this loan for a few years and then move to a 30 year fixed later



does anyone have any experience with this or is it just a bad idea totally?
 
Rates are headed up after the election. And as inflation rises, the 10-year note will also climb. Foreign governments will start selling T-Bills which will also chase rates upward.
 
I see the rates staying the same after the election because of higher unemployment and a new wave of foreclosures for the next 3 years or so. If they start raising rates it will kill the anemic economic growth that we have and will cause more unemployment then let the recession begin.
 
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