- To fund the stimulus package, our government is selling treasury bonds which compete with mortgage bonds, raising bond interest rates which raises mortgage rates.
- Mortgage lenders are flooded with mortgage loan applications from both refinance and purchase borrowers so they don't need to be as competitive on rates.
What this means to a Minnesota first time home buyer or Minnesota home owner thinking about refinancing their Minnesota mortgage is, you may want to seriously consider doing something soon. While I don't claim to have a crystal ball and I would rather be proven wrong on this, there are certain market forces out of our control that are pointing towards higher rates.
The bottom line is we can't have our government stimulus and low rates too!
Stay tuned
1 comment:
Hi,
Good information about mortgage rates in Minnesota. Yes, it has been identified high mortgage rates are touching sky in the recent times. This is because the government has issued some bonds which have a good competition with the mortgage blonds. So raising bond interest rates affected directly to the interest on the mortgage rates. Another reason for this is the lenders rushed with mortgage loans from both refinance and fresh purchasing loans. There are some other reasons due to the marketing conditions and world economic problems forces push the people to hurry to take home loans.
Your post will really help people who are looking after the mortgage updates for interest rates in Minnesota.
With best regards,
Steve Randel
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