In response to Market Watch's recent in-depth analysis of the U.S. mortgage refinance housing market, RoadFish.com's men's lifestyle and finance magazine encouraged readers
considering a home refinance or a home purchase to take advantage of the nearly
record-low mortgage interest rates, as they are predicted to eventually climb...
"So for folks
who are considering mortgage refinancing a home or a new home purchase, my advice would
be to take advantage of the current interest rates now because, who knows, it could be
another 40 or 50 years until we see them this low again."
RoadFish.com men's lifestyle
and mortgage refinance magazine today urged those of its readers who are toying with the
idea of mortgage refinancing their home or home buying to consider acting fast, as
a recent evaluation of the housing market revealed why mortgage interest rates are at
a near all-time low and why they may be turning around soon. In fact they are
so low that mortgage interest rates have even exceeded the expectations of professionals,
begging the question of how mortgage interest rates are continuing to decline every week.
Amy Hoak of the Wall Street
Journal's
Market Watch reported that before the week of June 14th, rates on the
average 30-year fixed rate mortgage broke record low levels for six straight
weeks. During the week of June 14th the same interest rates averaged 3.71% as quoted
by Freddie Mac. In her article, Hoak deftly addresses the curious situation
of U.S. home mortgage interest rates
continuing to decline even as statistics show that the housing market is making
a comeback. Hoak points out that factors from abroad play a large role in
influencing mortgage interest rates, and that there are additional issues within the U.S. federal
government that citizens may not be aware of that are influencing the home loan market.
RoadFish.com urged its
readers to heed the information in Hoak's article and act on it, if that
is their intention. RoadFish.com's senior staff writer is quoted as saying,
"This is a big deal. Home mortgage interest rates haven't been this low in over 40 years.
I checked Freddie Mac's table of the monthly average rate for a 30-year
fixed rate mortgage, which goes back to 1971, and it doesn't even begin
to touch the rates we're seeing in 2012. So for folks who are considering mortgage refinancing a house or home purchasing, or for first time home buyers, my advice would be to take advantage
of the current interest rates now because, who knows, it could be another 40 or 50
years until we see them this low again." The above-mentioned Market
Watch article reported that one of the biggest domestic factors in influencing
interest rates is the U.S.
The Federal Reserve's
Operation Twist Program, According to Freddie Mac's chief economist Frank
Nothaft, says this program is based on the U.S. Federal Reserve purchasing
long-term securities and selling so called "short-term" debt, which in
turn keeps the interest rates low for the moment. The article also reports
that the Eurozone crisis is currently playing a big role in the state
of mortgage rates within the U.S. Concerns revolving around the continued
integration of the euro zone is causing investors to transfer more money
into places where they believe it will be protected. In so doing, this
move affects yields on investments (such as 10-year Treasury notes) by
decreasing them. Hoak reports that the mortgage market uses yields on
the 10-year Treasury as their baseline when determining interest rates
for 30-year fixed interest loans, so the yields on investments has a direct
impact on affecting the mortgage rates.
RoadFish.com also
encouraged readers to do their research and prepare for a large financial
move such as refinancing or purchasing a home, and not simply to take
advantage of the current rates if it is not within their means. RoadFish.com's
senior staff writer is quoted saying, "The most important thing to remember
with any major financial decision is to do your homework. Adopt a ‘home buyer
beware' mentality, because then you will research high and low and get
a solid amount of information before proceeding. Also, you need to do
what's best for your own financial situation. Yes, the rates are incredibly
low, but if purchasing a house this year is not within your budget then
don't jump on it simply because it's a good deal. As I said, do your
homework. Study your budget. Work on your
credit report. Make
sure your decisions make sense, and are not impulsive."
Hoak's article concludes
by stating that these all-time-low mortgage interest rates are expected to
eventually being climbing. The last time that mortgage interest rates
bottomed out to as low as they are today, it was April 1956—fifty-six
years ago.
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