Still thinking about refinancing? Are you banking rates will go even lower?

Don't count on it!!!

Rates are the lowest they have been since the 50's but I still hear a few people saying they are waiting for rates to go lower! WHAT? The experts agree for the most part that this refinance boom will soon be over. Larry Baer of Market Alert said " It is my continuing belief that by Memorial Day of this year the lowest mortgage interest rates in a generation will likely have come and gone." While rates may not spike by the end of this month, his statement which he made earlier this year still has merit. Sooner (rather than later) the government will run out of money to buy the mortgage backed securities that it is buying up like kids do toys at the dollar store. This buying frenzy along with the reluctance investors are displaying in leaving investments in the stock market has held mortgage rates relatively low. This trend cannot continue indefinitely and as Americans we really do not want it to. As we pull out of the recession and investor confidence grows, the appetite for bonds and mortgage backed securities will fall and the yields (rates) on those instruments will rise. Many economist believe this trend is just around the corner. My suggestion to you is to call me and see where rates are today in comparison with your current mortgage and see if refinancing make sense by the numbers. If so, take advantage now and don't risk higher rates later.

James Dix

May 14, 2009