Jul 13, 2009
Lowest Mortgage Rates Have Yet to Come?
Many home owners and first time home buyers are currently asking the question, “How low will mortgage rates go?“ No one can honestly answer this question as there are a lot of factors at play. One thing seems to be the case in the current economy, President Obama and his advisers are willing to do whatever it takes to keep mortgage rates low. Some people feel that he is creating artificial interest rates, but they are definitely low in a historical sense.
One of the main reasons that mortgage rates are currently low is the fact that the Federal Reserve Bank continues to buy up US debt at an alarming rate. In the first six months of 2009, the Fed bought over $260 billion in US debt. This is going to put the United States in a further hole in the future, but the current administration feels that you have to get out of this mess first, then we will worry about the future.
Armed with this knowledge, we must predict that mortgage rates are going to go even lower. It is very possible that the lowest mortgage rates have yet to come. Once again, no one knows when the bottom is going to be, but if the Federal Reserve continues to buy US debt, interest rates are going to continue to fall. Some market analysts have predicted that we will see average mortgage rates as low as 4.5%.
If mortgage rates go to 4.5%, I hope everyone has their mortgage refinanca applications ready to go because there will be a swarm of applicants ready to refinance. It will be very interesting to see if the mortgage lenders will be able to keep up with this amount of traffic as they have cut their staffs quite drastically to save money in the troubled economy. If mortgage rates work their way down to 4.5%, mortgage lenders are going to see a ton of business!
Now is the time to start doing your research on a mortgage refinance. If you have been thinking about it in the past, there is no reason that you should take some time and effort to get a much lower home mortgage rate. Your mortgage was the biggest financial decision of your life, so why not take some energy into getting it reduced by up to several hundred dollars a month? There are plenty of internet resources available so please put them to use.
[...] this is a great depiction of what mortgage rates have looked like in recent history. Notice what mortgage rates looked like in the late 1970s and early 1980s. This was the last time period in which inflation [...]