Is your crystal ball a little fuzzy? Some buyers wait. Some buyers jump. Others lock. Others wish they locked. It's a bit like gambling. What does your crystal ball say to do? Who knows the future? Your parents? Your lender? Do you listen to the office know-it-all at the water cooler?
I say, listen to your lender and keep your pulse on the national news...what is Bernanke saying? Well on Jan. 3, 2011 according to the AP, "Ben Bernanke today left the door open to higher interest rates, saying the increase might be needed to prevent new speculative investment bubbles from forming." A bit of knowledge goes a long way in clearing your vision.
I'd say our friend Ben may indeed have shown us the crystal ball. As of yesterday, Advantage America Mortgage announced, their 30 year fixed rate is 5.000% and the 15 year fixed is 4.25%. This is up a bit, now into the whopping 5's.....Five percent, yes....that is right. Ask your parents and grandparents about that rate and contrast it to the late 70's. I had one client tell me yesterday that their dad swears that rates will reach 20% this year. While I am certain that is not going to happen, my crystal ball does show increases in the next several years.
A rate change of 1% (from 5% to 6%) on a 30-year mortgage of $200,000 will mean an additional $200 on your monthly mortgage payment. Is your crystal ball getting any clearer?
No comments:
Post a Comment