Apr 30, 2013

This week, mortgage interest rates are slip-sliding again, and that's great news for home buyers. Not all good news is actually good news, though. In the bigger picture, weak interest rates signal trouble for the economy as a whole. Our recent jobs report has shown dramatic declines. Bad economic news has single-handedly driven interest rates down. Just a few days ago and prior to this update, interest rates had almost reached the 4% mark after a steady 3-week climb.

With the latest jobs numbers hitting the streets, we appear to be heading into a downward interest rate trend. Until Congress gets it act together and makes a genuine effort to stem job losses and increase job creation, all sectors of the economy will feel the harsh impact of Washington's budget sequestration chaos. Despite the official unemployment rate at 7.7% nationally and remaining steady as of this report, many workers are actually dropping-out of the labor force due to the difficulty of finding a jobs. Our nationwide job markets are being hurt far more than is perceived by the public. Gains in the stock market and consumer confidence will soon begin to erode quickly, if this employment and jobs situation is allowed to get worse.

If you haven't done so yet, it's time to speak-up and make your voice heard with your Congresspeople. If Washington does little or nothing, those ultra-low interest rates won't appear so attractive as we fall-back into recession. Another recession will do far more harm than the average consumer and home buyer may be prepared for.

Till next month,

Interest Rates As Of March 1, 2013

6-month trends graph - as of March 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!