What about HIGH Mortgage Rates?
Mortgage refinance rates getting higher?
Many people wonder when all the good stuff will end, and mortgage refinance rates will go up through the roof. As an nj mortgage broker myself, I am going to go out on a limb and say that it won’t be too far into the future! We have had it far too good for far too long. Not that I want mortgage refinance rates to go up, because nobody really wants that, but I do believe it is high time for that day to come, and very soon! And to be perfectly honest, The market does not believe that homes priced for mortgage money below 5% will maintain their values when mortgage rates return to reasonable values, and neither do I.
Redusing mortgage refinance interest rates has always been seen as the quick fix for a down market, and it has failed the last few times. The public is just not buying into that old game, anymore.
Many people also feel that mortgage interest rates are still too high based on the fact that the 10-year bond is so low. they feel they should be getting 3% rates! The premise of the question, “Why are mortgage rates so high?” is the belief that the spread between mortgage rates and treasuries is too wide based on the historical norm.
Mortgage borrowers and home refinance customers are waiting for the BOTTOM of the market, which could take another year to hit that all time low. Buyers don’t care if the mortgage rate hits 1$, they will not buy intil they feel that the bottom has hit.
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