One question I get every day is; “will mortgage interest rates go lower or will mortgage interest rates go higher?”
If I could answer that question with a 100% surety, I would be making millions on Wall Street. However, I have some tools that give a pretty good indication of what is happening.
I just got off a conference call with David Shirmeyer, who is one of the industry’s leading experts in the technical side of mortgage bonds.
In a nutshell, this is what he said; The bottom of interest rates has already hit.
Now don’t panic. He also said that interest rates are not going to shoot up over 4% anytime soon (ha ha, like 4% is a bad rate…)
He mentioned that retails sales have been up, housing starts are up, stock markets are up, the financial crisis in Europe may be winding down; with all these things happening, investors just aren’t buying the low interest rate bonds.
Fortunately, the government is still buying bonds which is keeping interest rates low.
So will they go lower?
I honestly don’t see how they can. When rates hit lows, like they have recently, they are simply opportunities. It’s not time to relax thinking “what if they go lower?” Thinking like this makes us miss opportunities.
Right now is the time to lock in low rates.
Don’t miss them.
If I could answer that question with a 100% surety, I would be making millions on Wall Street. However, I have some tools that give a pretty good indication of what is happening.
I just got off a conference call with David Shirmeyer, who is one of the industry’s leading experts in the technical side of mortgage bonds.
In a nutshell, this is what he said; The bottom of interest rates has already hit.
Now don’t panic. He also said that interest rates are not going to shoot up over 4% anytime soon (ha ha, like 4% is a bad rate…)
He mentioned that retails sales have been up, housing starts are up, stock markets are up, the financial crisis in Europe may be winding down; with all these things happening, investors just aren’t buying the low interest rate bonds.
Fortunately, the government is still buying bonds which is keeping interest rates low.
So will they go lower?
I honestly don’t see how they can. When rates hit lows, like they have recently, they are simply opportunities. It’s not time to relax thinking “what if they go lower?” Thinking like this makes us miss opportunities.
Right now is the time to lock in low rates.
Don’t miss them.
