Future home buyers of America, and Americans concerned about the future of their investment, it may be time to turn your frown upside down. Top economists across America representing American Bankers Association’s Economic Advisory Committee have a positive forecast for our economy, reported by USNEWS.COM. Although we have heard many other economist, top economist as well I might add, say that the recession, in definitions terms, has already ended. Many of those economist believe that we are on a slow ride in recovery at this point, but the fact is, if the remaining “top economist” in the nation are all on the same boat in regards to where the economy stands by end of the third quarter of 2010, which is what the message from the economist in the American Bankers Association’s Economic Advisory Committee have forecasted, we MUST be headed toward “greener pastures” sooner rather than later, right?
Despite the Fed’s attempts to keep rates as low as possible to keep the rise of the Real Estate market churning, as the economy makes it’s turn to the final back stretch to the finish line of recession, the natural progression of higher rates, which is many times the byproduct of a stronger market, will likely begin it’s succession. No worries though, it seems like we have been able to study the history of our economy to the extent that unless a major event occurs, we will be able to manage mortgage rates to avoid any major hikes like we saw in the 80’s where rates were well over 10%.
If you have chose to “stop procrastinating tomorrow” on your home refinance and you are one of the ones that has made it through the variety of rate hike scares where rates inched up, but somehow have fallen back down to 5% or just under, your luck is surely running out.
CALL TO ACTION: If your interest rate is at or above 6% and you plan on being in your house more than 3 years, and/or you are currently in a 30yr fixed loan but could afford making about $100-$250 more on your mortgage in which would make a rate and term change to a 15 yr note possible, call your trusted mortgage advisor today! At the beginning of these low rates, I refinanced my own home from a 30 yr fixed with 5.125% rate to a 15 yr fixed around 4.25%, and it only changed my payment by $200 and I’ll make up $40,000 more principle in my new plan over the next 7 years than I would have in my old if I stayed where I was at.