Mortgage Blog

In recent years home refinance rates have pretty much remained in the 5-6% range and have held steady in that range due to all of the paper trading that was accruing between banks.  With the fallout of the banking industry and the private sectors exit from the mortgage securities market the Federal Reserve was forced to step in and purchase mortgage backed securities in an effort to keep the flow of money to banks so they could continue to lend.  By the fed agreeing to purchase these securities it has given new life to the mortgage market and has made home refinance rates fall down to below 5% for the first time in many years.

The private sector has started to enter the mortgage securities world and as a result of the feds buying and now private banks getting in the mix rates are continuing to fall.  It is this writer’s opinion that you should definitely not wait to refinance your home any longer.  Rates are not going to stay low forever and in my opinion they will probably tick up in the coming months so get off the fence and get your home refinance today.  Freehomerefi.com  has lenders offering loans at 4.75% on a 30 year fixed, How can you pass up a loan at 4.75% on a 30 year fixed with no points?  Thank the US government for their stupidity (or generosity) depending on which side of the fence your on and jump quickly to get your loan done today.  The government is on track to cancel all of their programs they put in place to help home owners in December so don’t wait until it’s too late, act today.

Interest rates have remained in a small trading window over the last 6+ months.  These historically low home refinance rates have helped many homeowners lower their monthly mortgage payments.  Most homeowners that are able to refinance will be looking at a rate between 4.5 and 5 percent.

So the question is how long will homeowners be able to take advantage of these low interest rates?  With the government spending and printing money inflation is all but guaranteed.  This means that interest rates will be going up, and they may be going up dramatically.  There is much talk about hyper-inflation and the possibilities of a depression.  The government has been able to keep rates low through a series of actions.  The problem with this, of course, is that when you artificially counter natural market conditions there will be a major correction at some point down the road.  I think everyone can see the writing on the wall.  The bottom line: refinance now, refinance long term and hunker down for a tough road ahead.  Mortgage refinancing may not be an option in the coming years.