I'm officially retiring my crystal ball

Hi Julia.  My buddy that lives down the block from me told me that he was just approved for a mortgage with Charles Schwab of only 3.25% on an adjustable rate for 5 years.  He wants to move by then so he's seriously considering it.  3.25%.  Amazing.

It is crazy.  I was talking to my uncle a while back when they were in the 5's and he could not believe it.  He said he had never heard of rates in the 5's his entire life and that I better buy something and take advantage of it.  I actually could'nt really get the loan for the house I wanted at the time, but right about now I sure am glad things played out the way they did! 

These certainly are strange times. Record low rates that probably have WAY more upside potential than down. 

My first house I paid 11.25% on a fixed rate, and I was in the mortgage biz back then too, so today's rates are just crazy low!  LOCk EM in now!

My crystal ball says rates will stay low for along time...too much uncertainty in the world, especially in the US.

I gave up long ago trying to predict where the rates were heading.  Clients ask all the time - "Do you think they will go lower?"  I just explain now that - Rates are very low, yes they could drop more slowly but as we learned time and time again - they go up a lot quicker than they go down so rather than being greedy to save another .25% or .125% in rate - lock and be happy.  With the market like it is and 30yr money in the low 4% range - life is good. 

I am amazed though when I quote a rate - say 4.375% 0pts and the person on the other side of the phone says - "I'm not paying that rate - its too high....."  In what world I have to ask......perceptions and reality sometimes just do not line up.

Yes, I find rates incredibly low as well.  My dad had a 4.25% rate on his house back in 1965, and the house cost him $25,500-- and he thought he'd be eating hotdogs the rest of his life.  He Sold in 1989 for $325,000, and for every month he made his PITI payment of around $200, he had an appreciation of just over $1,000/month.  Not bad from an investment point of view.