where do you think mortgage rates will be in...

[stoptheBS]

...18 months? I'll be buying another home in 18 months and I am curious what all you finance gurus think will happen to the market. Do you think banks will be raising rates to recover their losses due to the sub-prime problems.I am in the military and will be transferring. I will likely not be moving to any location where the homes are less than 350K for what we are accustomed to. I have excellent credit, and the home we live in now is paid off. we will take half and buy land cash for retirement and take the other 90-100K and drop into our next home. W e have no debt, but are aggressively saving toward retirement, so depending on disposable capital we will likely push for a 350K/15 to max equity. saving 6% on the house is better than a CD or risking it in a fund.

[abstracted_nyer]

So many factors.... First the Feds;They probably won't raise rates (they have toned down the inflation talk) but they are going to try not to lower rates either because they are more interested in shoring up the value of US assets held overseas to discourage a possible currency dump in Asia.Second, the banks; Could go either way. They may push rates down to encourage more mortgage activity and to try to return credit to an even keel but they may also raise rates because credit requirements are tightening and the market for loan products has shrunk.My best guess... 30 year rates will not go higher than 7.25% average and not lower than 6% average.Lastly, homes should be a long term investment not a quick flip... that is what messed up the market (and easy credit) now. Whatever you get in 18 months it will be balanced by the price of housing. The housing and mortgage markets will normalize in the next 12-20 months.