I swear the ubersmart financial prognosticators of the world have a way of stating opinions with out every being specific. A client commented to me yesterday that he was going to wait a little and try to improve his credit scores, as he said, "I think rates will stay low for a long time, so I am in no rush". It is true that rates will probably stay low for a good amount of time (see I did it there too).
The real question of course is, what is "low"? Well everything I read means low rates are considered lower than 5%. Around 29 million people still have mortgages over 5%. Big number. So clearly many have not, or been unable to, take advantage of today's super-duper-duper low rates. These rates are artificially low, and as such, any delay in taking advantage could be foolish and just a plain bad decision financially.
The government is buying the vast majority or mortgage production and they are continued to be involved. But big changes to banking rules and the projected devaluing of residential servicing for the depositories could spell big increases in the cost of mortgages going forward. Any increased incosts for banks and non-depositories will be directly reflected in the rate and price of mortgages.
I've sold double digit mortgage rates. I've seen rates rise 4% in a year. Don't think it can't or won't happen again. I can promise you, that by the time you realize mortgage rates have risen dramtaically, you will already be too late.
A bird in the hand is worth two in the bush.
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