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November 2008 Archives

November 25, 2008

Mortgage Rates At a Record Low!

Despite a period of uncertainties, the fundamental "laws" of economics still apply: When you increase the supply of money, the cost of money goes down. This one of a number of recent policies put together by the transitional administration in an attempt to give the U.S. economy a reviving jolt of energy. It's a bailout for the common man, so to speak, as many Americans have been looking to Washington for a policy move that would have tangible results.

Tell every one you know! The Mortgage Point Monitor for 30-year fixed loans registered at 4.875% at end of business Tuesday. That translates into roughly a 5.5% interest rate for a borrower with good credit. The Wall Street Journal reports that this drop has set off a rush to refinance. But I stress that this is an unbelievable opportunity for anyone who's been on the fence about buying property. Lock in your rates now if you're planning to buy real estate in the coming weeks. I'm serious when I say "Hurry, this deal won't last!" The risk of inflation that comes with printing more money means that this policy will need to be phased out before long. Though some economists say that this is actually bringing supply and demand into balance.

This is definitely one of the things I'll be thankful for this Thanksgiving. I'd like to extend wishes of a Thanksgiving Day well spent to all my readers and all of our past and future clients.

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