The government appears to think the economy and real estate market in general need a little more love. "Tapering" seems to be tabled for awhile as the Federal Reserve monitors the overall health of our country. Clearly they have it right. Mortgage rates spiked as earlier this year as the Fed decided it was time to pull the plug and we could, "all breath on our own". And just like clock work mortgage companies started layoffs as refinances slowed and purchase business couldn't keep up.
What is always true of mortgage lending is that when the government wants to slow down lending. They can immediately do so. Just like the "cooler" in Vegas. As soon as the CPFB, Fed, FNMA or some other government agency, quasi-sponsored group, or GSE decides the parties over... It's over and you better grab your red solo cup and get home to mommy.
The recent drop in rates was slight, and will help purchase business slightly but it will do little to really increase refinances. Although shockingly there is a huge portion of people who have yet to improve their rates and are sitting on 6% mortgages or higher.
But as Mom says, "people will always need money", and in reality rates are great right now. But that doesn't mean you go out and buy three more homes and leverage it all to be the next Trump. Or do you?
The economy is still shaky and many are hoarding cash and some even gold... Many are building bunkers and getting ready for the zombie apocalypse. And while I don't subscripe to the latter. In fact kill me first, I don't want to live through a Walking Dead in real life, the fact is many are unsure where we are headed.
But if you are looking to buy a home, buy it, you have to live somewhere and its cheaper than renting in many cases. If you are paying above 5% then refnance. If you can afford a higher mortgage payment then cut your term and lower from 30 years to 15 years.