2 Interesting Articles

Article 1: http://www.msnbc.msn.com/id/28471137/
As I am sure you have heard rates are at historic lows and many “experts” are suggesting that they will be going down further in 2009. While that is a possibility, I would like to take this opportunity to remind you that the experts are in this for their own reasons and making sure you get the best rate on your mortgage is not one of them. I encourage you to take a look at the graph in this link, http://library.hsh.com/read_article-hsh.asp?row_id=92 it shows the fluctuation of Fixed Interest Rates on Conforming Mortgages over the past three years.

The reason why I suggested that you look at this is so that you can see for yourself how volatile mortgage rates can be so that when you are trying to decide if you want to wait for the best rate you are aware that in a matter of days from any point in time the rates could rise by half of a percent and up. Just as we have seen interest rates drop by one and a half point over the past 2 months they could begin to clime as sharply with no notice what-so-ever like they did in the first half of May 2007 when rates jumped from 6.2% to almost 6.9%.

If you are interested to know more about what causes interest rates to rise and fall, take ten minutes and read this somewhat simplified explanation of the forces that drive interest rates. http://library.hsh.com/?row_id=85

For another interesting read – Today’s Wall Street Journal has an article about former NAR (National Association of Realtors) Chief Economist. This illustrates the importance of having a relationship with a realtor who does not “drink the kool-aid” and who is willing to search outside for information regarding the housing market, and who pays attention and does their own research using many different sources.
Article 2: http://online.wsj.com/article/SB123152099299568447.html#articleTabs%3Darticle

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