Last week 30 year mortgage rates continued to make us all very happy by remaining historically low. Check out this article from USA today http://www.usatoday.com/story/money/personalfinance/2014/08/28/mortgage-rates/14741693/ discussing the average 30 year mortgage rate. One very interesting point that the article makes is that it appears these historically low mortgage rates have boosted home sales. It also quickly takes away some of the luster of that comment by offering some quantitative data regarding home sales. Basically home sales have increased by 3.3% last month from the previous month but they are still down 2.1% from this time a year ago.
The article also talks about how the fed’s purchase program has been tapering and is set to end in October. This poses a major threat to low mortgage rates. Once the Fed stops program, the market will be left to fend on its own. Will there be a major bounce back as the market tries to find equilibrium after years of government interference preventing the natural course of things? My perspective is that we have much more room for rates to rise then there is for them to fall. Waiting for even lower rates than the historically low mortgage rates we have in today’s market is likely going to be very costly to consumers. I would compare this to playing craps.
Craps is a great game. It seems to give the player the “best” advantage with the “most” opportunities to win. This is why I like the game. If you play safe, you can play for hours on end and not really lose too much and often enough, you can come out ahead. Having said that, its really easy to get caught up in the excitement and the possibility of hitting it big. If you’re not familiar with the game, don’t worry I’m not going to get technical here. Just know that you can roll the dice for a very long time and continue to win. So can the players around you. This is because the reality of things is that events happen in patterns. Random patterns, but still patterns. So eventually your luck runs out as they say. If you were smart with how you were betting you could walk away with winnings and be very happy. If you weren’t so conservative you may lose it all on a single roll.
That’s what we have going on with Mortgage rates right now. We’ve been on a roll for a very long time and that luck is about to end. Do you want to walk away with a great interest rate today or do you want to risk it all for a slightly better rate in the future which more than likely won’t come? When you’re talking about your home and your mortgage loan, this isn’t a risk you should take. If you currently have a mortgage you should talk to a Certified Mortgage Planner right now and figure out if a refinance will improve your financial well being. Please don’t take unnecessary risks with the roof over your head. Call Today! You can contact the California Mortgage Hero and the Reese Mortgage Team today at 916-502-1656 or inquire on line at http://www.sacramentohomeloanspecialist.com/forms/refinanceAdvisor.html
30 Year Mortgage Rates Held Record Levels Going into Labor Day Weekend!
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