Since last December consumers have gotten accustomed to low mortgage
rates. Historically Low Rates. Mortgage rates during the last nine months
have been lower than they have been for thirty years. It’s been a mortgage
rate party so to speak. But like all parties, it has to end eventually. The big
question is…“When will it end?”
The Federal Reserve is already discussing an exit strategy from the current
low interest environment. Sooner or later the government will have to pull
back the economic support that they have provided (wisely or unwisely) to
the economy.
Perhaps the extraordinary stock rally we have seen over the last few months
will end with a major correction and send investors stampeding back to
treasuries and mortgage backed securities thus increasing bond prices
and lowering interest rates a little longer. Whatever the case may be,
eventually mortgage rates will go up. And probably sooner rather than later.
If you need cash out of your property, you have an adjustable rate mortgage,
you would like to have a lower monthly payment, or you have any other
reason to refinance, now may be your last chance to take advantage of rates
that we may never see again in our lifetimes.
Posted by Terry Brunner. Terry is a Senior Loan Officer with Horizon
Financial. Terry can be reached toll free @ (877) 627-9211 x150 or
email TBrunner@HorizonFinancial.org. Visit Horizon’s website at www.horizonfinancial.org
