Mortgage Rates Hit Record Low
Think you might be in the market to invest? Now would be a good time to evaluate your options.
For the first time in history, mortgage rates have dropped below 4 percent on the average 30-year fixed rate loan. What this means for the average family or investor, is that your money will buy you more of what you were in the market to get, should you be in the market to purchase. Up for some possibilities? Since mortgage rates are not the question of the hour, where is your money invested?
In an article on Bloomberg BusinessWeek today, Celia Chen, director of housing economics at Moody's Analytics is quoted, "Considering how far mortgage rates have fallen, we'd expect to see more people ... buying," She says, "It's still the lack of jobs and the difficult credit environment that's pushing most people away." A difficult credit environment being one in which financial inconsistencies, budgeting errors, or critical lifestyle or livelihood decisions have gone "unaccounted for" over a portion of the American economy, this being a uniquely American experience, to live the American Dream of ownership beyond reason. Buying as a means to an end for an economic remedy is pointless.
As for investors, however, options are limitless. "This is an opportunity most people won't see again in their lifetimes," Zillow's chief economist, Stan Humphries allows, "But we're in a period where rates are going to stay pretty low for a while because it's going to take some economic growth to bring rates up again." Zillow.com is a free real estate advice website.