Are Mortgage Rates At An All Time Low?
Due to the instability of the stock market and the debt crisis in Europe, mortgage rates are seemingly getting closer and closer to an all time low. As it stands right now mortgage rates are enticingly low. An average 15 year fixed rate loan is at its lowest in over twenty years and a 30 year fixed rate loan rate is at its lowest for the year at a mere 4.78 percent. Senior financial analyst at Bankrate.com, Greg McBride, suggests that this is the time to "Strike now". As suggested, many homeowners are following that advice. According to the Mortgage Bankers Association home loan refinancing application jumped this past week to the highest in seven months.
The financial crisis in Europe is causing international investors to switch to investing in the much more secure treasury bonds. It is because the treasury bond yields have fallen that the mortgage rates have taken a nose dive as well. Although this is fabulous news for everybody in the real estate market right now, this window of opportunity may soon end if investors begin shifting their investments out of the protection of government bonds which directly sway the current mortgage rates. Once the crisis in Europe has subsided and the American economy continues to grow, investors are expected to switch from focusing on bonds and return their funds to the stock market. This would cause mortgage rates to once again increase.
When comes to investing in anything whether it be government bonds, the stock market, or even a new home, the most savvy of investors always try to wait out the down slope of interest rates. Seeing that mortgage rates are at or are approaching an all time low, now seems to be the perfect time to act and purchase a new home or even refinance the home you currently have now. Waiting for the rates to decrease even more could prove to be a fruitless waste of time. Once the all time low interest rate has shown itself, it will be too late to act since by the time you absolutely know that they will fall no lower, they will be on their way back up.
Refinancing your home loan is definitely not for everyone. There can be exuberant fees involved that could reach into the thousands of dollars which in turn would negate any savings you might expect to see on your bottom line.
There is no denying the fact that now is the perfect time to purchase a new home. Add to the fact that mortgage rates are exceptionally low that the housing market is a buyers market now, there has never been a better time to buy a new home. Once the influx of available homes comes down to the level of wanting buyers this will rapidly change.
The financial crisis in Europe is causing international investors to switch to investing in the much more secure treasury bonds. It is because the treasury bond yields have fallen that the mortgage rates have taken a nose dive as well. Although this is fabulous news for everybody in the real estate market right now, this window of opportunity may soon end if investors begin shifting their investments out of the protection of government bonds which directly sway the current mortgage rates. Once the crisis in Europe has subsided and the American economy continues to grow, investors are expected to switch from focusing on bonds and return their funds to the stock market. This would cause mortgage rates to once again increase.
When comes to investing in anything whether it be government bonds, the stock market, or even a new home, the most savvy of investors always try to wait out the down slope of interest rates. Seeing that mortgage rates are at or are approaching an all time low, now seems to be the perfect time to act and purchase a new home or even refinance the home you currently have now. Waiting for the rates to decrease even more could prove to be a fruitless waste of time. Once the all time low interest rate has shown itself, it will be too late to act since by the time you absolutely know that they will fall no lower, they will be on their way back up.
Refinancing your home loan is definitely not for everyone. There can be exuberant fees involved that could reach into the thousands of dollars which in turn would negate any savings you might expect to see on your bottom line.
There is no denying the fact that now is the perfect time to purchase a new home. Add to the fact that mortgage rates are exceptionally low that the housing market is a buyers market now, there has never been a better time to buy a new home. Once the influx of available homes comes down to the level of wanting buyers this will rapidly change.
Source...