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Why you should lock in your 30-yr fixed mortgage todayAltos Research Real Estate Insights |
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Thursday, August 10. 2006Why you should lock in your 30-yr fixed mortgage todayGood news and bad news, folks. The good news is that long-term mortgage rates are still really low. The interest rate on the 30-year bond, on which mortgage rates are roughly based, is down from its highs this year. At about 5% today, we're still at very low rates. But the bad news is piling up: The yield curve is inverted which means two things: any short-term and ARM debt actually has higher rates than your long-term mortgage. It also means that the likelihood of recession is increasing. Some perma-bears are calling recession chances as high as 70%. My economic sources were generally positive in the first half of the year, but even they are pointing to slowdown signs. Paul Kedrosky points out the Google Trends on the topic today.  Inverted Yield Curve courtesy Bloomberg.com The 30-year fixed mortgage is one of the great financial deals of all time. Don't miss out on what may be the last great time to lock in.
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