Riding the Roller Coaster....Interest Rates..

It has been a bad week for interest rates as they have crept up slowly all week. The good thing is that they are still low but as they creep up they start to affect home affordibility for many.

Everyone always trys to predict what rates will do and to be honest no one actually knows but they predict in a way that they can't be wrong or right....ust in the ball park. Rates are like a roller coaster swinging up and down and even breaking sideways at times. A wild and wooly ride with lots of uncertainty. The only thing that is certain is that they will change.

Here is a perfect example;
http://www.cartoonstock.com/newscartoons/cartoonists/rma/lowres/rman3169l.jpg


Right now most expect rates to stay range bound for a while until we start to see major changes in our economy. In addtion as they like to follow cycles, many do expect rates to come down after the Super Bowl as we head in to the Spring market.

When you are refinancing or buying that home try not to let greed get in the way of your decision to lock in to an interest rate. Yes you will be mad if you lock and they go down but you will be mad as well if they go up. Use good sense and do what you feel is right instead of rolling the dice.

If rates take a big drop many lenders are willing to renegotiate the interes rate with and for you. You may not get the market rate but if you get a lower rate that is very fair. It is fair because when you execute a lock in with a lender it is a binding contract and the lender has no obligation to do this for you. It is just good business to do so. Remember that if rates go up they are not going to raise your rate if you hae locked in.


And of course we have a big weekend coming up....Super Bowl Weekend.....and as I said before many feel that rates will come down after this weekend....we will see. I personally believe that they will come down towards the end of Feb.

I found this article on the web about the Home Buying Process and thought it would go well with the blog and what I am laying out for you on it.
http://www.cnbc.com//id/41411693
I will continue on with more of this next week again.

For those of us that have received the blessing of so much snow....all I can say is be safe. I was hearing reports today about roofs collapsing. They say that 2 ft of snow on a roof is equal to 38000 pounds. Watch out for the ice dams and stay warm. have a great weekend everyone.