I can honestly say that after 11 years in real estate, I have not yet mastered how or why interest rates are affected. What I haver learned is that when the Feds say the economy is bad it is good news for mortgage interest rates. I was stunned today when I discovered that a 30 year fixed rate is right around 4.5% and a 15 year fixed rate is at about 3.75%. Wow!! I cannot recall seeing FIXED rates this low in my time in real estate.
I did a quick google search and voila, it's true! It seems that the Federal Reserve Chairman, Mr. Ben Bernake, gave an not so positive review of the U.S Economy to Congress which immediately affected stocks, bonds and yields which ultimately drive interest rates. Again, I don't know the "science" behind it all, but I know a low interest rate!
If you are one of the very lucky ones who has some equity in your home, what a time it is to investigate a refinance. And for those of you who have been considering purchasing, super low prices coupled with a phenomonal interest rate equals a beautiful thing!!
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