Every time the market thinks that we have reached the end of the run and rates are poised to rise in some sort of permanent fashion the market fools us all. In fact, market watchers have been fooled so many times, they must feel like Charlie Brown trying to kick a football. However, the bottom line is that mortgage interest rates have dropped significantly enough for everyone who can to consider refinancing again.
It is not expected to last long. The Federal Reserve has already discussed the end of their purchase of Mortgage Backed Securities, otherwise known as artificially keeping rates down. This has had the impact of injecting uncertainty in to an already sketchy market. Whenever the Fed is done, rates will rise. Big Time.
This applies to those who might be considering purchasing as well as those who may benefit from a refinance. In fact, if you are a buyer, it’s more urgent. There has never been a better time to buy. In addition to the low rates, there are more challenged sellers and more inventory available than ever before. You will be able to negotiate a great deal whether it is on the Friday after Thanksgiving or the 23rd of December. You will be able to command a great price. Add that to really low rates and you have a recipe for a huge win.
If you are a candidate for refinancing, too much has been written about this before. Review this link.
Either way, keep the lines of communication open with your mortgage professional. Fixed rate loans below five percent are not around every day, and won’t be for long.
