It isn’t every day that mortgage rates set record lows like they have this week. In fact, the lows that have been reached this week have NEVER been seen before in the United States, ever!This means that there is historic opportunity for existing and future homeowners looking lock in all time low mortgage rates.
Why Are Mortgage Rates Setting All Time Record Lows?
The markets of the United States and the world are in turmoil and extremely volatile. Consistently bad economic data has shown that recovery is not occurring at the pace expected or at all. Concerns about inflation, unemployment and other key indicators are driving fears of a double bottom recession, an extended recovery and an all around weak economy despite stimulus attempts. When markets are driven by fear, investors take money from equities (think stocks) and place them in safer but lower yielding vehicles like bonds. Money flowing into bond markets help push rates down. This means that bad news for the stock market is generally good news for mortgage rates.
What Does This Mean For Me?
You may have heard the phrase “never try to pick a bottom” when speaking to a financial adviser or in conversations regarding the stock market. The saying holds true for mortgage rates as well. The markets move too fast to truly pick a bottom and when rates do rise, they will move quickly, meaning that once they move upward, it will be too late for you to get the rates that are available today. Now is the time to lock in record low rates, holding off in the hope of squeezing a tiny bit more out of the market is a gamble with very high risk and very low reward. We can help, now is the time.