I hate to admit it, but I am often relieved to see poor economic news. I feel bad for the people that it affects negatively. However, I know that it will mean that interest rates will stay low, which is good for my clients who are locking in rates to purchase a home. Low rates means more purchasing power for my clients. These rates are especially helpful for first time buyers who are tring to get into their first home.
If you have been watching interest rates, you have seen them drop to record lows once again. The last time they were this low, there was a lot of talk about all of the upward pressure on rates and that they may never be low at again. After all of the recent economic problems in Europe, investors started moving into US Treasuries, which pushes rates down. Rates on 30 year fixed loans have once again fallen below 5% with zero points. Adjustable Rate Mortgages have been quoted under 4%! This is cheap money. Once again, I hearing a lot of talk, that this won’t last for long. There has recently been more evidence of the improving economy. One of the positive signs has been that more consumers are paying bills on time. We all be watching to see what Fed Chair Ben Bernanke will be doing.
Like everyone, I will be happy to see improvement in our economy, but it is hard to give up these incredible rates!
