That is the million dollar question and if you can answer this question, you should try to help solve our current economy’s financial problems. The real answer is that mortgage interest rates have had the lowest, consistent levels for over 48 years. Currently hovering in the mid 4’s, a client can not go wrong.
Looking back 5 years ago, we used to track certain statistics to help guide us with interest rate trends – Those being unemployment rates and new housing starts. Whenever the news reported high unemployment or high housing starts, interest rates would rise and vice versa. Today, there are many more factors effecting mortgage rates. Foreign markets, with their challenges, are a huge factor in influencing our bond/interest rate market. The US Bond Market (which affects interest rates) is considered a safer haven, than investing in foreign bond market….Thus, keeping our mortgage interest rates low.
See the Interest Rates from past year s in this link - http://www.mcimageserver.com/IR/2011_4_20/1364___.pdf
Contact us for all your mortgage questions and needs. We are here to help and are excited to share our knowledge of the market.
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