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Thursday, January 19, 2012

Mortgage Rates : Rapid Rise Likely In The Coming Months according to Dan Green, Waterstone Mortgage

Mortgage Rates : Rapid Rise Likely In The Coming Months

Welcome to David's latest blog entry. I'm glad you're here.




Low mortgage rates are on a short lifeline.

There Are 4 Reasons Why Mortgage Rates Will Rise

The HSH article is titled "The End Is Near For Low Mortgage Rates". It's a brief history of the last 2 years with respect to mortgage rates. It covers the 2009 Crisis of Confidence that spawned today's Refi Boom.

Mortgage rates would not be at today's levels if it was for a series of events including Eurozone bailouts, massive job loss nationwide, and 3 rounds of Federal Reserve intervention. Mortgage rates are low not on fundamentals, but on fear -- and on Wall Street, fear always gives way to greed.

(MARK: and, please keep in mind that an interest rates dramatically impacts your monthly budget as well the maximum purchase price you can afford; every 1% increase in interest rates is the equivalent of a $9,000 drop in maximum purchase price you can afford, all other things being equal. If you have any questions, please call me at 917-797-5059, email me at marksladehomes@aol.com or check out my website www.maplewoodandsouthorangehomes.com)


Here's an excerpt from the article :

Many forces conspired to keep mortgage rates low in 2011. Now, some of that energy spilled into 2012. If we examine those forces one-by-one, though, we see that rates can't stay low forever. Mortgage rates look poised to jump. It won't gradual, either. It will be all at once."

The piece breaks down mortgage bonds, market psychology and what's next for rates. The conclusions aren't so far-fetched. Beginning this February -- just in time to doom those HARP refinancers! -- mortgage rates could surge northward.

Mortgage rates are at the mercy of the markets. You don't get a second chance to lock yesterday's mortgage rate. The only way to guarantee a mortgage rate reservation is to actually place that order with your lender.


Author
Dan Green
About the Author

Dan Green (NMLS #227607) is an active loan officer with Waterstone Mortgage. Email Dan atdan.green@waterstonemortgage.comor call 513-443-2020.

David provides regular guest commentary on the HSH.com website. HSH provides mortgage data and insight to businesses and individuals. My most recent column looks at today's ultra-low conforming and FHA mortgage rates, and explains why rates are set to rise.

Looking for a Fannie Mae or Freddie Mac loan; or an FHA Streamline Refinance; or an VA IRRRL loan; or a USDA mortgage? What about a jumbo loan? Act quickly. The forces that, since 2009, have conspired to keep mortgage rates low are now poised to fade into history. And when they're gone, so will low mortgage rates.

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