What a ride it has been! Interest rates have been low for some time – to the point where people began to take them for granted – assuming that they will stay low. History would suggest otherwise. There are many factors that impact interest rates: the economy, secondary market, bond yields, stock market, consumer confidence, inflation and a few dozen other things. I think the tides and moon also impact rates somehow!
In my 39 years of lending, I have never seen the rates that we’ve had over the last couple years.
I had a client recently who watched the interest rates and wanted to refi but kept waiting for them to go down – their waiting now has cost them a higher rate by over a half of a percent on the interest rate.
Can rates go down? Sure and monkeys can fly. I just simply don’t trust the market. If you are thinking about refinancing, buying real estate, or needing a mortgage…
The interest rate has a significant impact on how much house one can buy and these great lower rates should not be taken for granted. Here is the impact of rates increasing with a payment of $1503.
For many borrowers, waiting could end up costing thousands of dollars in qualifying power if rates rise even one percent.
The economy is a wild card. Do your own due diligence and then call me, let’s run the numbers to see if buying or refinancing now makes sense.
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