Why buy now??

Last Tuesday, January 6th, Interest rates on mortgages hit an all-time low
in the United States.  There are many factors that have merged to create
this scenario, aka...oil prices have plunged below $50/ barrel, the European
Union is in a great financial struggle and China's markets are showing
weakness as well.  The worldwide financial woes and volatility make long
term Bonds and Mortgage Backed Securities a safe haven for major investors
around the world.  

 

With a large influx of money to the world of Bonds/MBS,
the prices of those Bonds/MBSs rises and that causes interest rates to drop,
which has been the case as of late.  30 year Conventional and Government
Loans have been generally in the mid to high 3s as of late and the 15 year
loans are seeing rates in the high 2s!  Amazing indeed.  

 

This trend has been historic and has brought the short and long term cost of buying a home to all-time lows.  This creates an environment where buying or refinancing a home may be a very smart move.