Given that such a rate increase in a short period of time would be very destabilizing and have huge consequences, it's unlikely a rate hike like that could come from anything the Fed did, and it isn't happening otherwise.

Maybe he was napping and the instructor was trying to wake him up.  

Ugh!  

Heck no. Have heard an increase but not like that. The market would freak out.

"he saw it on the internet ......."

Bring back Jimmy Carter and we'll see what can happen overnight. 

no....I believe we'll have a strength for the next few years.....then you can fasten your seatbelt....

I just can't see this happening.  I think he should ask for a new instructor.

Absolutely not!  

I think a sales agent should need to work in GENERAL RE for 3 years before 'broker license-eligible'. And no. Not that much. A little increase to come, but not double.

I do not agree and if it happened it would throw the economy into a severe depression and shock.

lol, not a chance in hell

Not realistic; rates might inch up a bit, but not up to 9% this year.

No way will it go up that much.

No a thousand times no.

Another educator that has no idea of what they are talking about.

That would tank the ecnomy and the fed reserve is not going to  let that happen

Just out of curiosity is he from Utah as well!

A rise yes that much no.

Susan,

You sure he was sober?  A

I think the highest you might see in the next year would be 5%, but even that would throw folks into a panic.

9 percent...I think that's fairly unlikely.

However, I do believe that data does point strongly toward at least an interest rate hike of between 1.5 and 2.5 percent from the current rate. And given the strength of the US economy and global economy, we're probably also headed toward a rate hike sooner than later--my estimate, sometime in mid July for a modest rise.

Given that I bought my first home at 11.75% interest, I think even a modest increase to interest around 5-6 percent is not going to damage the market.

Just my two cents.  Course, MY crystal ball has been on the fritz since 2007.

Another agent / broker who has a crystal ball and can predict the future.

I think we will see an increase in rates, but 9% would be a little crazy

no way on gods green earth. but he got you to think, and you got me to answer. :)

Susan Laxson I guess he wanted to see who was paying attention. An increase is probably, nine percent unlikely.

The always wise  Dick Greenberg has this one nailed. The financial system couldn’t adjust to a rate increase that high and that fast.

very doubtful, what is the basis behind this guys claim?

Wow, an instructor with a crystal ball! I remember when interest rates were very high back in the late '70s and would not like to go back there.

You may be right about the instructor testing his class to see if they were paying attention to the lecture.  I wonder if anyone challenged his statement.  

If it does we are in a world of hurt at 9%. Sound like the broker to be needs more econ studies. 

Nope.

No, not anuwhere near that jump in one year.

Rates will go up but not that high that fast. I would be interested in knowing the source of his information.

Susan Laxson - something that we cannot control!

However, people with right frame of mind may not agree with increase to 9 percent.

Sounds like the Crystal Ball is broken.  Just not likely as this would totally topple or "destabilize" our economy.  Hard to believe.  Sorry! 

The instructor does not know what he is talking about. There is a 48% chance of a July rate hike and 35% for June. The best economists can't even agree what is going to happen next month, so how can an instructor predict a rate of 9% by the end of the year. Bottom line, no one, not even the Fed has an idea of what interest raTes will do. We all know rates will go up this year, the question is by how much? My guess is that we will still have rates in the fours by the end of the year, but again, it's only a guess 

What crystal ball did that forecast come from ?  Sounds like one fogged to me !

Nope, no not in 2016 or 2017. We are more like Japan with 0 rates and no economy. 2016 October 29 - rate dip, 2016 Christmas rates in the low 5's 2017 Christmas rates 5.25% range in the big picture REALLY cheap

Look at Venezuela.  Their once vibrant economy is totally destroyed. 

    Anything is possible.

I doubt they will hike it so high so fast. But well....some people just talk.

No I can't imagine that big a jump.

Must be some crystal ball that instructor has. I wonder what the MBA would think?

I'm not feeling it Susan, not even a little bit.

He must be able to read the future.  I cannot do that, but I do feel the at rates will increase down the road.

You can't fix stupid!

That doesn't sound right at all - too much of a jump - unless the Feds want everyone in the country to be on the unemployment line and homeless I don't see this happening

Then again - our fed goverment is not known for making "smart" decisions

Yeah, right! When pigs will fly.

No idea.

Sharon, I remember when I bought my first place and they were at 18%.  Anything can happen.

My old purchase contract says 13.5% APR.... So ?

My gut reaction would be no way, however knowing the government it wouldn't surprise me

I don't ride a broom , nor peer into a crystal ball. Our industry is reactive and we have no control over interest rates, so why lose sleep over it?

Interest rates depend on many factors.  I see some loans and credit products with interest rates exceeding 9% in today's market.

I doubt it. At least not here. 

I am afraid if he made such a statement, I would have dropped out and switched to a school where there is no crystal ball stating where rates will be. So far he couldn't be more wrong as we near historic lows. No one knows for sure where rates will go but there is only so much more they can go down before you make money from the negative interest rate and we all know that will not happen....but, the sky is the limit as to where they can climb to.

Good morning Susan Laxson,

No, unless he has the authority to raise himself.

Susan Laxson in an election year?  No way, the instructor was

a)  joking

b)  checking to see who was awake in class

c)  not living in reality

9% interest rates?  Only if the fed wants to kill the economy!  The smart money is worried that we'll go to negative rates like some euorpean countries have already!

No way and no how... it would put us in a depression. The current prez may hate America but the fed controls this not his phone and pen. 

I don't think so - but what do I know!