Pop quiz: the consensus among mortgage lenders is that Hurricane Sandy will have the following effect on mortgage rates: A. Up. B. Down. C. No change. Answer: C. That opinion seems to be based on two factors: 1) Hurricane Katrina’s negligible effect on interest rates in 2005; 2) the Fed’s commitment to keep rates low...Read More
Lower Mortgage Rates Hike Affordability The big story in real estate this year — besides tightening inventory and rising prices in several market segments — is the effect (still) dropping mortgage rates are having on Buyers’ purchasing over. So, when 30-year rates were over 4% — what, six months ago? — a Buyer who could shoulder...Read More
Refinancing Into a 2.75% Fixed Rate, 15-Year Mortgage Ok, so it’s not a Porsche or a 2 week Hawaiian vacation, but you could do worse than scoring a 15 year mortgage at 2.75% today. What that says about you: –You own a home; –You actually have equity in your home — and therefore can borrow against...Read More
Cost-Benefit Criterion “Quitting smoking is easy. I’ve done it lots of times.” OK, so refinancing isn’t completely painless — there are some fees involved, and some paperwork to fill out (natch). But, the operative question to ask isn’t, “how long has it been since I refinanced?” or even “how much will it cost?” Rather, it’s...Read More
Heightened International Tension Strengthens Dollar The conflict between North and South Korea is having a predictable effect on credit markets this morning. Specifically, whenever international tensions kick up, there is a flight to safety, which — at least until now — translates into demand for U.S. dollars and U.S. debt. That strengthens the dollar, and...Read More
Deciding Rationally — or Realistically I don’t usually advise clients which mortgage is best for them; that depends on their financial circumstances, time horizon, credit scores, etc. However, if clients ask, I will serve as a backstop for advice they’re getting elsewhere (like from their financial advisors). And I always encourage clients to get a...Read More
