Bond market keeps mortgage rates low

The NY Times posed the question yesterday: “Just how low can [mortgage] interest rates go?”

I had predicted rates would be 5.5% to 5.75% this fall and it looks like I may be wrong. For once, I hope I am.  I have tried to make several predictions this year and I’ve missed a few times. I promise to be a little more accurate in the next recession.

From Investor Appetite for Bonds in a Tepid Recovery Weighs on Rates  from the NY Times By Christine Hauser.

The stampede into bonds is lowering the rates on things as diverse as home mortgages and corporate loans. The two-year Treasury rate sank to a record low on Friday, briefly edging below 0.5 percent. Thirty-year fixed-rate mortgages have fallen below 4.5 percent — another record. And, with clouds gathering over the economic recovery, the Fed is expected to hold its benchmark rate near zero this week.

I am not advocating that you wait to buy or refinance. I am saying move now or begin the process now to move soon. Who cares if you lock in at 4.375% and rates drop to 4.125%?  The difference on a $200,000 is les than $30.00 month and both payment are less than $1,000 for principle and interest!

Check out for this helpful mortgage calculator

Check out for this helpful mortgage calculator