Special offer

In the mortgage business, a little calamity is a good thing!

By
Industry Observer with Responsive Pest Control

Hi all: Welcome to you from snowy Western Washington. As many of you are aware, there is significant unrest in Libya right now. This follows upon the heels of government overthrows in Tunisia and Egypt. In the mortgage business, calamity is a good thing!

The resulting unrest has caused mortgage interest rates to dip under 5% again O.A.C. for a 30 year fixed mortgage. As investors get nervous they pull money out of the stock market and seek the safety of bonds. This is good for mortgage interest rates. Will it last? No. But if you're considering buying or refinancing within the next month, you should benefit.

I told all my colleagues in the office that if they want to see mortgage interest rates trend down start a war. I was being facetious because no one would want to be in Libya right now. But bad news economically (Libya is one of the top oil producing nations in the world) which includes a spiking of oil prices causes everyone to panic. Again, I think a lot of this is short term and expect mortgage interest rates to climb again soon. Oil prices will also come down after the unrest subsides.

What are you seeing? What do you think? You comments are always appreciated. Bring on the calamity! Have a great day!

Contact me

Posted by

Paul McFadden

John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Good point, Paul!  I prefer the calamity that doesnt effect gas prices quite so much!

Feb 24, 2011 10:16 AM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

John: I hear you! I expect gas prices to moderate. The danger these speculators run is just like last time. People stop driving and filling up so much. That's a great way to keep prices down. Thanks for commenting!

 

Feb 24, 2011 10:22 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Paul you hit the nail on the head with this post.  After seeing rates creep up for about a month, they have taken a nice drop this week.  But I agree the low rates will not stay there for long.

Feb 24, 2011 10:46 AM
Mark Nehs
Mortgage Loan Officer Waukesha Wisconsin - Pewaukee, WI

Paul,

Yep, as is usual unrest is good for rates.

Feb 24, 2011 01:16 PM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Mark: Now if we just had a little unrest for a while! Lol!

George: Thanks! Hopefully our clients will clue in! Take care.

Feb 24, 2011 03:21 PM