Here is the all time 10 Yr Chart. I show you this for one reason. Please look at the BIG hump in the middle and the humps to the right and left of the chart. OK. Pretty clear, rates can go up and down. You can also see they can go up several points per year in some cases. Now no one has a crystal ball, but when you factor in the facts (get it)... that we are in the indisputable all time low for mortgage rates over the past 50 years and we've seemingly bottomed in Real Estate in most metro markets...The question remains at what point do rates rise? Warren Buffet will tell you no one can predict a bottom of anything. But IF you are staying in your home, or don't plan on selling a property for an extended period of time, refinancing short term or adjustable rate mortgage debt to fixed debt takes the insecurity and unpredictability of rising rates out of the equation. Any the economy improves, corporate earnings continue to rise, unemployment drops, and the government slowly lowers its mortgage purchases, I'm betting we get a big rise in rates, and if you haven't purchase or refinanced by then, you will see your your borrowing costs and benefits go down markedly.
No comments:
Post a Comment