As the saying goes, "you never know when you've hit bottom until you bounce up". This applies to the interest rate markets, and if there is one thing you can be sure of, it's that rates rise at four times the speed than they fall. I've witnessed it time and time again; rates drift lower over the course of a few weeks, remain there for a while, then jump within a few days and never look back. Take November 2010, rates were low throughout the summer of 2010 and bottomed out in late October/early November. In late November, interest rates went from 4.5% on a 30 year fixed rate to 5% within a week, and remained at those levels thru May/June 2011. I had about a dozen fence-sitters that missed the boat.
So, here we are again with a sovereign debt crisis, including our own, and an economy mired in a real estate funk, interest rates are back to their lows of Novemeber 2010. Right now the best execution price is about 4.375% on a 30 year fixed rate. Don't try to catch a falling knife! Lock in today and take advantage of today's rates before they bounce.
I welcome a conversation about your mortgage, or the general direction of interest rates. Feel free to email me anytime at gdevine@atlantichomeloans.com, or call me at 401 301 0130. You may visit my web site at http://www.bankyourloan.com/gdevine We are licensed in RI, MA, CT, NY, NJ, and DE.
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