Archive for January, 2010
Lowest interest rates are they to stay?
0 Comments Published by margomurray January 3rd, 2010 in Real Estate in South Orange County, Rancho Santa Margarita Real Estate, Housing Economy, Real Estate Advice, California Real Estate, Buying a home, Should I buy a home?, Is this the right time to buy a home?. by margomurrayHappy New Year.
As we end 2009 we can look back at some of the lowest rates ever in the mortgage markets. This weeks rates are up by .375% from two weeks ago and are expected to rise during the first quarter and again each quarter through the end of 2010. We are coming to the end of lowest rates ever as the 10 year treasury bond yields are now hovering at 3.85% today very 3.22% last month. Nevertheless, rates in the high 4’s and low 5’s are still incredible!!!!!! We are spoiled with low rates and our expectations of mortgage rates in the 4’s are unrealistic. When rates are this low we all receive low interest pay out for our savings accounts and CD’s. Investors want a higher yield when they are buying bonds (which fuel the mortgage markets). So, we must accept that rates in the 5’s and 6’s is normal for mortgages and will still provide a great lending platform for people to purchase homes
