The motivation behind this question is always, “Will rates go lower?” Well, they certainly could (although, despite a huge move in the bond market yesterday due to the Feds announcement, rates have not improved near as much as we anticipated , but you really should be careful to bank on that.
Our concern now is that rates are going to go up, and maybe quickly, by the end of the year. Why? First of all, despite the Fed’s announcement yesterday that they will buy up 1 Trillion dollars worth of securities and bad debt, the mortgage rates today are not down near to the level they should be by such a move. We have said it would take the government once again intervening to push down rates significantly. So far, however, that push down has not happened in a drastic manner.
Secondly, since our government thinks they are Paris Hilton on a shopping spree and continue to spend money like we have it, we are going to start to experience inflation. This will occur because the government is spending so much money (and incurring a load of debt never seen) that it is devaluing the dollar. They also are going to be forced to print more money. All of this is going to lead to hipper inflation. If this happens rates will shoot up, and probably fast.
All of this said, now is the time to move on whatever you have been thinking because we do not think this is going to last for more than 6 to 12 months. If you have a scenario you need looked at then make sure we check it out and analyze it for you before you get into a situation you regret. We are here to serve you.