Rates Continue to Imrpove

Interest rates have continued to improve... and bond analysts are considering the fact that their markets and prospective yields may move even lower. That means offered interest rates could go lower as well. How much lower... we are at RECORD LOWS again, when making history its difficult to predict because historical data is not available, so we follow the trend, and right now the trend is positive.

Despite these low rates mortgage applications remain flat which suggests home buyers are not out in the numbers we need to stabilize the housing market. Are we lining up for a double dip? Are more foreclosures going to be hitting the market? Are home prices going to turn down again? These are all legitimate questions and anyone that immediately brushes them off is not being very realistic.

Buying now is by no means a bad move. Waiting to see where the real estate market settles in the next couple of months is not a bad move. Ignoring the opportunity available to refinance into a lower rate or ignoring the low home prices and rates available for borrowing, knowing your options - these are the people I worry about.


Above is a one year graph of the mortgage backed securities market. This market is producing the lowest consumer rates in history. Anyone not interested in paying less for money they have borrowed... didn't think so.