I Keep Holdin' On

We are pleasantly surprised by the fact that our mortgage rates are still so low. As you'll note in my previous posts, we've been expecting rates to rise since the Fed's purchasing of Mortgage Backed Securities ended in March, however we're now seeing rates as low as they've ever been, thanks in large part to the economic turmoil in Greece, Portugal and other countries, which are having a negative impact on the Euro. Once again this has driven investors toward our safe haven U. S. bond market, driving up the bond price and lowering our mortgage rates.

The homebuyer tax credit is gone, but there are still lots of homes for sale and those sellers don't have the tax credit to use as an incentive any longer. Those who are able to are more likely to incent buyers with lower prices.

Super-low interest rates and lower prices = great opportunity. No strings attached. No government intervention. Just the market working to let you know that now could be a great time to buy (or to refinance if you've still not done so).

While these rates have been holding on, they won't forever. Inflationary pressures and a rebounding economy are both around the corner and will both be bringing these rates up to more traditional levels soon.

Please share this message with anyone you know and care about who is considering that home purchase or who has not yet refinanced and I'll answer any and all of their questions.

I can be reached at 615-627-4869 or at twiggins@affsmortgage.com. Thank you.