|Rates at 7:30 October 20, 2014|
Demand for Mortgages Slips, Supply Improves, Interest Rates Tumble
You would have to dig deep to find a single prognosticator who would have predicted mortgage interest rates at under 4% again in late 2014. In fact, most would have suggested that the under 4% phenomenon was a once in a lifetime experience that would never repeat again. The pundits got it very, very wrong, and that has created an opportunity for many, many homeowners and those who would like to be.
You see, the reason mortgage rates are slipping is easy to see. Home buying is down. Inventories are up. Prices are slipping. The Fed is still nervous about the frail so-called recovery, and financial institutions are sitting on piles of cash. Net result is too much money chasing too few mortgage applications. You are the potential winner of the trend.
If you are contemplating purchasing a home or condo for your residence or for investment, the next 5 months are likely to see the coming together of a perfect storm in your favor. If you are considering refinancing because your current loan is at 4.5% or higher, now is the time to get your application started.