Wow...last week, I was talking with people who were seriously considering getting out of the real estate business. You see it was only 3 weeks ago that mortgage rates were awesome. They were quite stimulating for the economy....a reprieve, if you will in the bastion of negative real estate news.
Last week, however, mortgage rates had escalated to where they were eyeing the 7.0% mark. That brought out the naysayers who, after three weeks of bad economic data coupled with inflationary remarks by Bernanke, said that maybe it was time for them to "shift out of real estate" and into something more stable.
BUTTTTTTTTT, here we are three weeks later and the mortgage industry is looking as if March and April will be bull runs in a bear market. You see, long term fixed rates have dropped almost .75% in just this week alone.
WHAT DOES THAT MEAN? It means that our economy sucks (booo!). It means that long term interest rates are going down (yeahhh). It means that we are in the most volatile market than we've ever been with.
So if you're thinking of buying or refinancing....don't do what 15 of my clent's did. Don't wait for that "awesome" pie in the sky rate. Rather, just judge for yourself and see if the rate is fair and accomplishes all that you want it to accomplish. If it does....go for it.
If not.....pull down hard on your seat harness and just enjoy the ride.