I was reading an article in one of my favorite ezines the other day, www.earlytorise.com, and one of their financial gurus suggested that mortgage rates may rise in the next few months. His argument was because inflation is a threat the Federal Reserve will feel compelled to keep lowering rates. Usually when inflation is a threat, investors seek security in bonds. And it's well known that when the bond market improves mortgage rates go up as well.
Right now I'm finding a lot of borrowers are sitting on the fence unsure of what to do. This should be your call to action. If you're hoping for better rates, it might not happen. Currently, the 30 year fixed rate is at or near 6%. I'm not sure it will go much lower. I also don't think underwriting standards will get any easier. If anything, they may continue to tighten for the next few months.
If you have the ability to borrow money or buy real estate, do it now. There's another article on MSNBC's website, www.msnbc.com, that suggests the same thing. You're welcome to contact me for further information and, as always, I welcome your comments. Have a great day!
Paul
Paul McFadden
