Like most people, I found myself blown away by the inauguration. I was amazed by several things.
1. Technology allowed our entire team here at America’s Mortgage Choice to watch it on the web, live and uninterrupted. We don’t even have a TV here. The internet has put everyone on the same “information page”
2. The amount of people that attended in person was hard to comprehend, even as I looked at it live. I have a high school friend that was up close and posted experience to his facebook page. Amazing how we were able to feel a part of it. (special thanks to Tim King)
3. Agree or disagree with President Obama politically or philosophically, I am impressed with his ability to get everyone “on board”. Most Americans want him to succeed which is an achievement itself.
So how does this relate to mortgages and the real estate market?
In every way possible. It’s time to get to work on solving the problems we have and deadlines are approaching.
The first is the Fed meeting on January 27 and 28. Around 1:15 CST on the 28th, the Fed will tell us their next move regarding interest rates. Please keep in mind that the current Fed Funds Rate between ZERO and .25%. There is not much room to cut further.
However, they will make a policy statement that may impact mortgage rates. The mortgage backed security market (where rates are set, not the 10 year US Treasury bond) is nervous right now because with the uncertainty of action to be taken by the Obama administration. Several economic fronts (foreclosure, housing prices, employment, taxes) need to be addressed and as long as there is uncertainty in the market rates are likely to rise a bit as they have over the last week.
In fact, if you have been considering refinancing your home, run the numbers now. If they make sense, do it. Trying to guess the bottom is a tough game to play. Don’t be the client who keeps paying a 6.875% mortgage because though you can get 5.5% today, you want 5.25% or 5.125%. Don’t laugh, I have one customer waiting since 2003 for 4.5% on a 30 year fixed. He is still paying 6.875%.
The Fed Meeting may not result in any change whatsoever. Most don’t. However, if you lose the chance to save tens of thousands of dollars over your lifetime because you did not pick up the phone this week, you will kick yourself. In today’s economy savings via refinancing can help you have a mortgage free retirement and help you meet any number of financial goals you may have.
For a quick review of your mortgage situation, contact us today or download this form and fax it into 630-368-1688.
