So the Fed just cut the Fed Funds rate by 75 basis points. That will in turn mean lower interest rates...eventually. Also watch the stock market, because the lower it goes the better it is for bonds, and the better it is for interest rates! But if the stock market climbs back then GAME OVER.
What you should be doing right now is have a clear line of communication with a lender! That might mean talking to them every day. That might mean that you might want to make a call on locking in an interest rate soon. Keep watching it closely. DO NOT sit and sit and wait and wait and keep thinking rates will keep going lower. You can try to time the low and look like a genius, but you will never know when it is there either, so good luck.
If you are buying at all this year, or even refinancing, timing is truly everything. In the blink of an eye interest rates could jump back up to 7% like they were as recently as last July.
The difference with a 200K loan at 5% vs. 7% is $270 per month. It can add up to a lot of savings!
When it feels right lock it in!
For more real estate insights, go to http://www.coloradodreamhomes.net/
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