Mortgage Rates Remain near all time lows

[fisherdog19]

Well folks, although the market has been awfully volatile and it seems something is always going on, rates remain at or near all time lows. Currently we have 5% on the 30 year note and about 4.625% on the 15 year. I'll try to explain what is going on and when it may change, but can't guarentee it will happen the way it think it will . As most of you can see, it's a daily occurance for the Dow to take a loss and that is reflected in most of your retirement accounts, yours truly included. When the Dow drops, that money goes elsewhere and with the resent help by the government to stabalize the banking industry and increase market liquidity, along with the purchasing of Mortgage Backed Securities, some of that money coming out of the Dow is being put into Mortgage Backed Securities. This drives the prices of these securities higher which in turn lowers the effective interest rate for Mortgage Loans.

With that being said, we all assume that the economy will come back along with the stock market. When that does happen, there will be a shift in investing and money will go back into the stock morket and in turn come out of the Mortgage Backed Securities which will drive the rates back up. Nobody has any way of telling when this will happen, it could be 6 monts or 6 years, but it will happen eventually.

What I'm trying to say is that if you are considering purchasing a home or refinancing a home you currently own, now is the time. If you are unsure of what you want to do, or are not sure if it would benefit you, do not hesitate to contact me. I'll make everything easy to understand and let you know if it makes sense to move forward. Don't wait for the possibility of lower rates, because it may never happen. I'd hate to see anyone lose out on saving money when they could, in hopes of the possibility to save a little bit more. Rates are low, homes prices are very low, and we have money to lend.