Mar 03, 2014

February 2014 Mortgage Interest Rates

- originally posted February 1, 2014 -

Interest rates began to drop during the final two weeks of January, on increased worries that the stock market is overpriced.  That has pushed bond prices up, as investors seek safe havens away from declining stocks.  Remember - when bond prices rise, interest rates drop.  Go bonds!

We may now be on the cusp of some big changes ahead, with the likelihood of a significant stock market corrrection. Might we see interest rates drop again to the lows of 2012, or first half of 2013?  That's still anyone's guess, but its certainly possible.  In the meantime, its still very important to lock-in your interest rate, so not to lose any gains the market has been giving us.

Low mortgage interest rates keep housing affordable, and it really helps to offset the increases in housing prices we saw during most of last year. I'm optimistic that we'll continue to see low rates for another year or two, because its unlikely that we can have two different economies - one for the investors who pocket the gains of a bloated stock market; and, another for consumers who continue to lose purchasing power because of wage stagnation, real unemployment, and a declining 'labor force participation rate'.

Stay tuned for more updates.   Till Next Month,

Long-Term Interest Rate Advice

The expectation is for interest rates to rise. Don't take these low rates for granted. If you're financing a home right now, my best advice is to "lock-in" these low rates, rather than gamble that they'll be lower as you get closer to your closing date. Better be safe, than sorry!

If you're in the market for a home this year, allow me to help you find the right lender and loan program, and help you take advantage of these great low interest rates. Today’s interest rates are still quite a bargain!

Michael Dagner

Michael Dagner is a real estate professional in Denver, Colorado.