Future Mortgage Refinance Rates
Predicting mortgage interest rates is like catching a falling dagger!
Getting the very lowest rate of the year is like trying to catch a falling dagger — it’s treacherous business.
This topic is worthy of some further discussion because my experience is that the most unlikely people, real amateurs, they really seem to feel that they are most adept at predicting interest rates. Everyone seems to be a know it all in today’s mortgage climate. everyone wants to be in the know, but we need to focus on reality.
In January of this year, 2009, we saw mortgage interest rates plummet to REAL historic lows. I have recently locked in 30-year loans at 4.75% and 15 year loans at 4.5%. This lead to MANY people, a lot of my past clients, como me to refinance their mortgages.
This does create some major problems. There is a story to be told about mortgage refinance interest rates. It also leads to people making stupid choices like buying homes and getting mortgages that they really can’t afford.
But whatever the rates are today, for some people it seems as if it’s never quite good enough. If the rate is 5%, they want 4.875%. If it’s 4.875%, they want 4.75%. People are ignorant and NEVER satisfied. I have a theory that if mortgage interest rates dropped to just 3%, people would complain that they want 2.75%!
It’s almost like those idiotic morons you see in the gym, arguing because one guy can bench press 5 lbs. more than the other guy. It’s retarded, to put the mortgage situation, quite bluntly.
People generally want the lowest rate possible, purely because it is psychologically satisfying, not because they are worrying about saving an extr $7.00 per month on their mortgage payment.
you cannot predict the future of mortgage rates
There are way too many things that play into where the mortgage refinance or purchase rates will be in the future, all you can really do is make an educated guess. The problem is, the public is too ignorant to really get educated.
People have no damn clue what the hell really affects mortgage rates, and so they TRY to learn by shopping at 300 different banks, then complain how scary and confusing the whole mortgage process is. Gee…..
Then they blame the loan officer and call him a liar when they don’t get the exact interest rate they wanted.
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