Could we be living in the twilight zone with mortgage rates (queuing theme music)?
Mortgage rates are dropping as quick as the sweat drips from one’s forehead from a H.I.T workout.
Players roll two dice and move around a game board, buying, trading (negotiating) properties, and developing them with houses and hotels. Players collect rent and secure other opportunities to receive board game capital. The ultimate goal is to have your opponent(s) plunge into bankruptcy. The last player standing is the winner.
Lending giant Freddie Mac might disagree that mortgage rates in the month of July will be the lowest record low.
- 30- year fixed- rate mortgage averaged 3.19 APR.
- 15 – year fixed-rate mortgage averaged 2.71 APR.
- 5/1 adjustable rate mortgage averaged 2.89 APR.
Other than a wealth strategy, it could be quite peculiar in understanding a consumer need for a 5/1 adjustable rate mortgage. Moreover, many factors are taken into consideration after the first five years when the mortgage completes for adjusting the mortgage rate.
(Let’s return back to the issue)
Mortgage rates are hitting such record lows due to a huge contributing factor…… Inflationary economics are under duress, which in essence has buyers in a more putting in all chips for home purchasing.
In the result of a weaken immune stock market, bonds have seesawed frequently since March. What is a bond?
Think of a bond as an interest rate. Bonds are subject to interest rate risk. I.e. one consumer opens a credit card and has a 6% interest rate versus another consumer who opens a credit card at 24% interest rate.
“What will happen with the spread of Covid-19 and its influence on key items such as mortgages”
Matthew Speakman, an economist with Zillow says, “Rates could just as easily begin to trend upward again, particularly if key economic data or measures to contain or treat the virus show meaningful improvements”.
What will happen with the spread of Covid-19 and its influence on key items such as mortgages- – the question I assume most analysts are thinking about. What If rates do a complete 360 and start going upwards, this could be a bit of a dooms day for the housing market.
Gen Z, millennials, gen x and baby boomer buyers are lining up as if it was the day after the American holiday (Thanksgiving) to acquire a mortgage.
Welp, hopefully the real estate gods have heard Mr. Speakman thoughts and such improvement will in fact take place.
