Mortgage Rates Hit 13-Month Lows

Why are Mortgage Rates dropping?  Rates historically seem to trend downward in uncertain economic times. Although Mortgage Rates move up or down for a variety of reasons, the Brexit debacle appears to be leading this downturn.  As Europeans argue about “alliances” and “market trade”, Worldwide Investors tend to become nervous. During this uncertainty, the U.S. Bond market can be a safe investment vehicle to park capital while Brexit works itself out, which could take months or even years.

What is Brexit?  Brexit is short for the “British Exit” from the European Union.  This is a complicated negotiation which is slated to take place March 29th, however British Parliament has rejected efforts twice on how to implement it.  What will happen March 29th?  It remains uncertain, but the likelihood is that it will not be simple.
If you are a potential home buyer, what does this mean to you?  With lower interest rates you have more buying power and a lower payment.  So, it is a great time to buy!

Rates are down and it is likely with the continued confusion in Europe, more money will come into the U.S. Bond Market keeping rates low.   Of course, there is always the possibility that something  can happen elsewhere to drive mortgage rates up.  But for now, if you are looking to buy or even refinance this is the time to strike. 

Thank you Anissa Rooney of McCall Mortage Company for contributing this article.
To contact Anissa, click here.

 

About the Author

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sjones

Steve Jones was drawn to McCall for the big western recreation. He began his real estate career in McCall at Spring Mountain Ranch in 1997 where he had the opportunity to hone his knowledge of second home real estate among seasoned consultants and real estate trainers.Twenty 22  years into his real estate career, Steve shines in finance, marketing, and technology, and is well-connected in the local community. As the founder of Cascade Raft Company on the Payette River in 1985, Steve developed a comprehensive perspective on tourism travel and vacation aspects of the second home market. He uses email to keep clients informed of new listings, maintains our own website, and uses his skills as an amateur photographer to enhance visuals online.He also creates virtual tours on Youtube for easy client accessibility. Steve understands how to present a home on the internet and manages a real estate blog, a Facebook page, and a monthly e-newsletter, reaching a wide market of potential buyers and sellers. Steve is a charismatic story teller with a vibrant sense of humor.His experience on the film sets of River Wild and Almost Heroes (where Steve and Cindy worked together) gave Steve experience with logistical planning, marketing, and commercial production. Steve brings real estate to life with innovative strategy and an unparalleled energy.We are now in our 22nd year in Real Estate and look forward to helping Buyers and Sellers in every step of your real estate needs.