Borrowers Wait for Lower Mortgage Rates and Lose

This was the title of an article that I just recently read in the paper. I had realized awhile back that some home buyers were thinking that historically low interest rates were a given, and would be around for a while. Think again. Rates have been inching up steadily for several weeks now and with the passage of the tax cut deal in Washington, this could mean an end to the downward trend.

The tax cut deal “would effectively put money back in Americans’ pockets right away, and will help the economy heal faster,” says some economists. A stronger economy would make stocks more attractive than bonds as bonds are seen as a safer bet in shaky times. Rising interest rates follow rates set by government bonds. Investors have been selling those lately, causing their interest rates to rise, therefore, higher interest rates for your home loan.

People who have been waiting on the fence are either making the plunge, or getting burned. Which side do you want to be on? With prices at lowest levels in years, you don’t want to be telling your story of missing the market at your next cocktail party.

If you are ready to take the plunge, contact me to discuss what opportunities are out there for you.