Mortgage rates ?

[Homeseller]

Does anyone out there know when the last time in history that mortgage rates were this low for a mortgage ? I have seen rates as low as 2.47 % . How many years since rates have been so low must be at least 30 maybe 40 years ?

 

[Thomas Beyer]

They have never been this low here, but also in Japan, US or Europe. They will stay this low for twenty or more years.

 

[Crystalront12]

[quote user="Homeseller"] Does anyone out there know when the last time in history that mortgage rates were this low for a mortgage ? I have seen rates as low as 2.47 % . How many years since rates have been so low must be at least 30 maybe 40 years ?

[/quote]

Hello

Its a spectacular Swan Dive in mortgage rates we are watching these days and the forecast says that it will take at least 1 more year to see the rise in these rates.I would say this is the biggest dive since 1935 and around 1/4% of the rates compared to that time. Hopefully experts are saying that rates would raise up next year and we can expect it to go up to 6%.

bratchrealty.com give the complete information regarding Mortgage rates and the concern forecast.

Hope it will be helpful for you.

Thanks

 

[Thomas Beyer]

[quote user="Crystalront12"]I would say this is the biggest dive since 1935 ... Hopefully experts are saying that rates would raise up next year and we can expect it to go up to 6%.[/quote]

This is utter BS.

Rates will stay low for a long LONG time as baby boomers consume less and save more and governments of all stripes have a huge entitlement wave to pay for in healthcare and pensions and social services. Check our facebook page or blog if you wish to read why.

With interest rates in Europe and Japan near zero, Canada will follow suit and the US will raise its 0.5% lower than Canada rate very slowly. The US today should be higher than Canada due to a now better economy but is till 0.5% lower (0.75% in Canada vs. 0.25% in US).

Higher interest rates = high currency value = weaker exports !

 

[DonCampbell]

Since 1985 I have paid on my mortgages a wide range of interest rates. From 16.25% to Prime minus 0.9% (and just about everything in between).

Today's low interest rates are at record lows and will frankly stay low for a fairly long time given the flight to safety (bonds) and the need for continued economic stimulous in most countries and the demographics of North America. The largest and wealthies cohort in history (the Baby Boomers) and their companies are sitting WADS of cash, sitting on the sidelines. This pile of cash is keeping a cap on bond yields - which drive the mortgage market.

The more important part of your mortgage that should be looked at is NOT the rate (that is where consumers focus) - it needs to be on the terms, penalties and flexibility of the mortgage. If you chase rates, you will end up signing on to a mortgage that will eventually come and bite you hard if you ever need to make a change, move or sell.

The 2nd thing that consumers (and most investors) are not understanding is that today, now more than ever in fact, choosing which financial institution to get your mortgage(s) at and in what order to do so can make or break your ability to get further residential mortgages as you build your portfolio. (Hint: don't use the EASY banks first!).

Rates are low. If you see a 2 in front of the rate, you should smile. But be strategic in ALL that you do. Rate is inconsequential when compared to the other considerations.