Aldo Grillo's New York Real Estate Blog

Within the last 2 week mortgage rates have been moving higher, why? Well if a government tries to generate grow and spend, the funding needs to come from somewhere. Furthermore if we bailout the financial industry and autos, where does the government come up with the funds. Taxes are not an option at this time so government bonds are sold on the open market. If we see more bonds sold on the open market increasing supply bond prices will decrease and the rate will increase to be more attractive. Now you see the factors taking place, and why rates are moving up. There is a tool the Fed can use, and that would be to go into the open market and buy the bonds, but wait with what money??? You can’t have your cake and eat it too.

What does a home buyer do? Go ahead and don’t factor in high or low mortgage rates. I home buyer if waits weeks or months will only see several dollars in monthly cost. But if a home buyer waits a year or long factor in the economy will not need the stimulus from the government and rate will increase do to inflation. If you locking with some prime areas home prices will not come down any more than what you have noticed already.

What does a home seller do? That will depend on your financial issue. Are you selling because monthly cost are just too much. Think about cutting you loss now rather than waiting for a future market where prices will start to move up. This will take some time before we will see the economy support home prices to move. Remember the top dollar you could of got for your home 1 year or 2 years ago, well that is only a memory for now. Specially in hard hit areas where prices fell 30 to 50%.

Refinancing is more of a dilemma than all scenarios. If you are refinancing a non jumbo it still is a good time to refinance but you need to speak with your loan officer and see what is the best rate you can get and the savings. For jumbo mortgage rates is a get ready a wait game. Go through the motions of your application, this will be an expense of credit report and property appraisal, but if rates will move lower you are ready to take advantage of a refinancing rate and save.

All individuals have different situations so that means you need to speak to a professional and get the fact relating to your issue. If you would like to give me a call and to ask any questions about your mortgage, home buying, or home selling issue do not hesitate to call me or email.

Aldo Grillo
NYS Real Estate Sales Agent
Charles Rutenberg Realty
718-701-5650 Office
718-701-5650 Fax
Email: aldo@NewYorkRealEstateValue.com
Web: www.NewYorkRealEstateValue.com

Mortgage Rates: www.SureRateLock.com