So we are so excited about the feds possibly lowering interest rates again, well here is the other side of the story that we don’t see.
Posted by: Scott Swinford, Mortgage Planner & Credit Expert In: Real Estate Finance| credit| refinance
It seems that almost everyone is getting excited about the Fed cutting the Funds rate. “That must make money cheaper to borrow, so interest rates will go down”, they seem to be saying.
In fact, rates on 30 year fixed mortgages are as low as I have every seen them.
“This must be a positive sign?” or “This will surely stimulate the stagnant real estate market which many seen to blame for this mess!”
Not so fast…
Enter our enemy “Deflation”.
See, we are used to financing things and feeling fairly secure that the dollars we pay them back with will be less valuable later on. For instance, a $300 mortgage payment was a lot in 1960, but seemed very small when you made that last payment in 1990.
What if prices declined and the dollar was now worth more? People would hold off making purchases thinking the products would be cheaper… sort of like waiting to refinance until the rates drop a “little more”. This could potentially cause orders of goods to decrease, factories to shut down, unemployment to increase and ……. read the rest of the story
Gina Bombin, Wheatfield, Indiana Real Estate, Jasper County Real Estate, NWI Real Estate
For all of you out there that fit into this category, this one is for you. Not only does this apply to anyone thinking about refinancing, but anyone on the fence about purchasing a new home. There has never been a better time to buy, then now. With interest rates at an all time low and home prices that have dropped a national average of 9-15% this is the best time to start looking for a new home and investing in your self.
This is a great article that my colleague, Scott Swinford, the NWI Loan Guy, wrote to inform and educate all of us about refinancing.
Because of the latest media coverage, I have heard this statement several times during the past couple weeks. The question is…. does it make sense?
Yes and No. While I cannot blame someone for wanting to get the best interest rate possible, it is nearly impossible to time the market and get in at the bottom. That said, here’s a solution.
If, and that is the keyword here, if you believe that the government is going to step in and help lower rates, now is the time to take action. Even though they don’t know what they are going to do, how they would do it, or even if they will, now is the time. To Learn more read the rest of the story at the NWI Loan Guys Blog
Hope this helps.
Gina Bombin, Wheatfield, Indiana’s Real Estate Professional
McColly Real Estate
Designed By :
