Interest Rates Below 5%
Interest rates are testing their lows right now. This is due to mortgage-backed securities (which is what determine interest rates) are rallying today on the economic data that came out earlier today which showed jobless claims higher than expected. There has also been foreign interest which has helped the rally along with the Fed buying mortgage bonds too.
The Fed extended their term to the end of the 1st quarter of 2010 to continuing buying mortgage bonds. That would sound like good news however that means that they have to stretch the monies that they have left to get to the point which decreases the amounts that they buy week in and week out.
The bottom line is to get your interest rate locked in if you can because they won’t stay this low forever. Don’t get greedy and think “well maybe they will fall further.” Who cares if they do fall further, you have a rate in the high 4%’s