How Low Can Mortgage Interest Rates Go?

The economy has been showing signs of weakness causing the Dow Jones Industrial Average to plummet in the past few days. Part of the reason for the fall is the concern over the jobless figures which have not shown signs of getting better.

One of the effects of the downturn is stock prices has been to reduce long term interest rates. Mortgage interest rates are now dropping towards record low levels. The question is how low will they go. And will the mortgage interest rates stay low for very long? In the past year they have hit low levels only to rebound quickly.

If you are looking to buy a home it looks like we have the "perfect storm" in the real estate market with a combination of low housing prices and low interest rates. The Commerce Times published an article title "No Time Like the Present to Look Into Residential Real Estate." The article concludes "All of the above having been said, now might be a great time to purchase some residential property. If you have reasonable hope in the future, think about what you property could possibly be worth 10 or 20 years from now. In retrospect, you might have made yourself quite a deal."

If you own your home and are thinking about refinancing is this a good time? Here's what theadvertiser.com, A Gannett Company, has to say recently in an article titles "Is it a good time to refinance?" "Despite doom-and-gloom reporting, not every homeowner in the U.S. has negative equity right now. And with interest rates still hovering near record lows, those with equity are likely asking themselves whether it's a good time to refinance. Well, is it? Let's take a look:" The article concludes "So even if your equity is pretty low, there are options. The point is, with rates this low, it's a good time to sit down and discuss whether refinancing would improve your loan situation. We all know that rates are fleeting and what's here today may be gone tomorrow. Contact your local Realtor or mortgage banker for more information."




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Alan Gross
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