Jul 02, 2013

There isn't anything going on with mortgage interest rates that makes any sense right now.
There's no good reason for mortgage interest rates to be rising, but they have been throughout the entire month of June, 2013.  

Investors have sought every opportunity to use shreds of data to force the markets into the direction they'd like to see it go.  Their actions make little sense and just add to the enormous confusion over what is truly driving our financial markets, given the "moderate" economic growth - nothing sustainable.  Day by day, the markets appear to be driven by more by a gaming mentality, than anything resembling sound investment or economic principle.  Our financial markets are operating on wishful anticipation, and not on reason!

So, where we go from here?  

The Fed needs to step-up and through their various forms of rhetoric and monetary policy, and must make it very clear to the markets that we're not yet in a sustainable recovery.  Real unemployment numbers and declining income growth are still very real threats to our overall economic growth.  

Given all the warning signs, the markets should not be acting like its the roaring twenties.  The markets must be restrained and righted, which will keep interest rates in that extremely affordable range for most homebuyers.  This, in turn, will continue to encourage sustained growth in the markets, and housing market.

Stay tuned, I anticipate that mortgage interest rates will drop again soon.

Till next month,

Interest Rates As Of June 1, 2013

6-month trends graph - as of June 1st, 2013

Interest Rate Advice

Although there's a lot of reasons for interest rates to remain stable throughout this calendar year, the long term 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 us 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 quite a bargain!