Well, not exactly. See the video below…
The business TV world is on fire this morning with rumor of 4.500 percent mortgage rates on the horizon; the clip above ran on NBC this morning. The news comes from information released on the “down low” that the U.S. Treasury will somehow positively impact the mortgage market, causing rates to fall a full percentage point below their present levels.
Nearly every news reporter in every publication is stating, however, that this story stems from pure speculation. But hey – why let facts get in the way of a good story? The news got released, and it’s raised hope in the hearts and minds borrowers here in Winter Haven, Florida and across the country. As such, I thought it important to highlight a few facts:
- The Treasury is not in charge of setting mortgage rates — These rates are set by Wall Street traders. Historically, mortgage rates are based on the Supply and Demand for mortgage-backed bonds.
- Treasury intervention does not translate directly into lower rates. Mortgage rates are up by a half-percent since last week, and there is no guarantee any Treasury move will keep them down.
- Few if any details about this plan have been confirmed, quoting CNBC. Everything you’ve heard about 4.5 percent rates is strictly conjecture at this point in time.
The main thing to remember here is that nearly all of the analysts interviewed have relayed that a Treasury-sponsored stimulus move may help buyers with good credit, but will do little for homeowners here in Winter Haven who may have fallen behind on their payments, have no equity in their homes or have lost their jobs.
At just below 6%, mortgage rates today are very low in comparison to where they were in 2006, 2007 and early to mid 2008. If you think your mortgage rate is too high for this market, email me or give me a call at 863-604-3019 so that we can review all of your options. If rates really do reach 4.500 percent, the option to refinance is always there for later.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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Hey Kevin:
I wanted to blog about this as well, but I think you covered it very well. I especially liked “why let facts get in the way of a good story”
I am going to link to your blog post if that is ok.
john
Hey John, thanks so much for stopping by! Yes, absolutely! You may link away, my friend!