Saturday, April 16, 2005

Interest Rates Drop

Quote of the Day:

"If you think education is expensive...
consider the cost of ignorance!"
-Unknown Author

Dear Readers,
Have you been hearing lately that mortgage rates are going up? Well they're not. At least not yet! Here's some information from a recent article I read in my Inman News subscription:

* Long-term mortgage interest rates continued lower on Thursday (4/14/2005), and the benchmark 10-year Treasury bond yield slipped to 4.32 percent.
* The 30-year fixed-rate average dropped to 5.44 percent, and the 15-year fixed-rate sank to 5.05 percent.
* The 1-year adjustable was down at 3.75 percent.

It's certainly not news that rates are expected to go up. They have to eventually. We have been in the range of historical lows for months and months (even years now)... so we know they are going up eventually. But, When? That's the big question. There has been so much activitiy in the housing and refinancing market, some lenders are seeing a slowdown. In my humble opinion, the lenders (and realtors, for that matter) want you to think the rates are going up so you will act now if you have any inclination whatsoever. Beyond that, I don't think the economy is as strong as the politicians would like us to think. :-)

When you hear on the news that the Feds are raising the interest rate, that is the short term rate... and does not necessarily affect long term rates.

I'm no expert in the financial market, but that's my take on it... just so you know.

Have a great day!

Realtor, ABR, e-PRO, GRI, REI

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