Excerpt from: Flagstaff Mortgages
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| February 16, 2009 | | Home loan rates are likely to be volatile -- and to continue at historic lows -- this week | Weak economic news normally helps bond prices and home loan rates go down. However, so many homeowners and homebuyers are taking advantage of current low interest rates that many mortgage lenders have hit capacity. Lenders deal with capacity overloads by raising rates and that's why home loan rates have ticked up lately.
Rates are likely to be volatile this week as economic news rolls in each day. Markets opening the week on Tuesday after the President’s Day holiday will look forward to President Obama’s housing speech scheduled for Wednesday morning in Phoenix.
We'll get news on the inflation (or, deflation) with Thursday's Producer Price Index (PPI) Report and Friday's Consumer Price Index (CPI) Report. With the recent concerns about deflation, it will be important to see which way these reports have moved. The mortgage bond market will anticipate the moves and if the reports are too far off from what is anticipated, volatility will be significant with home loan rates gyrating.
In reality, rates are historically low and if you are buying a home for the long term, as you should be, rates are not likely to ever be lower than they are here in the first half of 2009.
If now is the time for you to buy a Flagstaff home, start with a consultation with Team Heitland at RE/MAX Peak Properties. | |
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