For Love Nor Money: Mortgage Interest To Increase

WHO’D A THUNK IT?  As you have already read it on Realestateblocks.com, mortgage interest rates are about to rise due to inflation cause by the shrinking value of the dollar.  Fed Chairman Bernacke announced today that the Feds low interest rate cuts were at an end, and inflation caused by the drop in the international value of the dollar my lead to higher interest rates.

Here I am, Cassandra, again.

I just got out of a meeting with Chase Mortgage regarding mortgage loans.  Online Chase’s mortgage interest rates are not available.  Wells Fargo was also nervous about mortgages rates.  Thirty year rates move before short term rates and it is likely borrowers will not see 5.85% fixed rate again for many years.  Any rate under 8.0% fixed is a good rate.  Traditionally mortgage rates run at least 3% over the rate of inflation.  Right now, it looks like fixed rates should be close to 10%.  ARMs and interest only are last year’s idea.

The primary cost of a home is the amount of the monthly payment.  Smart buyers and sellers will make their move now, and complete purchases and sales before November.

Borrowers will not be able to get low fixed rates again for love nor money in a few short months.

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