Monday, March 10, 2008

Treasury bonds finally got a much needed break on Monday and long-term mortgage rates reacted favorably.

Even though rates crept up last week, let's put this into perspective.  Remember the 80's?  (Okay, maybe I am dating myself...yes, I  realize that many of you were still in diapers.)

Nonetheless, there were times when 30 year fixed rate mortgages were in the double digits.  How about 11%?  14%?  Now, that's what I call high.

The good news is that interest rates are still below 7%...considerably below.  And although rates may ticker up a bit from time-to-time, the bottom line is that they are still VERY LOW.

Another perspective?  When have you been able to buy real estate as low as you can right now???  Here's my point:  Don't play the rate game and hold out for rates to drop.  You may find yourself in a much worse position as real estate turns around and prices start going back up.  The tiny little fluctuations in the rates don't even come close to the financial punishment you'd feel by waiting on purchasing a home when prices begin to rise.

Twin Cities Mortgage Rates

30 Year Fixed          6.375%

15 Year Fixed          6.25%

Jumbo 30 Year        7.75% (paying .75% discount point)     

Make it a great day,

Minnesota Mortgage Mom