Today's post is simple and to the point. Interest rates are absurdly low.
When I first became licensed in the early 1990s, I started my real estate career in the mortgage business. And my first job involved cold calling homeowners and offering to refi them at 8.75%, since rates below 9% were "historic" (at the time). If rates in the mid 4s don't do it for you, there's not much else I can say.
For comparative purposes, when VA loans were first authorized by Congress in 1944, servicemen were offered fixed rates of 4.0%. Today's rates are barely a tick above what soldiers returning home from World War 2 were offered nearly 70 years ago.
The risk of an upside spike is far greater than a continued decline, because we are already bordering on "free money". Although I do believe that 10% unemployment is the new reality and the economy will remain sluggish for some time, the effects of a $2 trillion cash infusion into the economy will eventually manifest. I do not believe you will see rates like this again in your lifetime.
For comparative purposes, when VA loans were first authorized by Congress in 1944, servicemen were offered fixed rates of 4.0%. Today's rates are barely a tick above what soldiers returning home from World War 2 were offered nearly 70 years ago.
The risk of an upside spike is far greater than a continued decline, because we are already bordering on "free money". Although I do believe that 10% unemployment is the new reality and the economy will remain sluggish for some time, the effects of a $2 trillion cash infusion into the economy will eventually manifest. I do not believe you will see rates like this again in your lifetime.
