mortgage interest rate
Once again our government, who by the way created all the financial chaos in our society, is now pretending to be some sort of superhero when it comes to finance, banking and mortgages. They say that they are helping us financially by working with the banks to lower US mortgage rates. Well, the truth is who do you think the banks are, they are the federal government and therefore, who do you think benefits from a high mortgage interest rate? It is the government. They are cutting their profits by offering lower interest rates, the problem with this is that they are now offering adjustable rate mortgage loans, which will start out low, making people want to take a new mortgage, but they also have the potential of going higher after a few years. Always be careful when you get an adjustable rate loan of any kind as this can work out well in the short run, but can turn out very badly in the long run. After all, you must consider the fact that the government is not going to drop rates indefinitely and they will need to make up ground later for the lower rates they are offering today.
Owning your own home was once part of the American dream. With the economy sitting where it is, it is honestly just becoming a pipe dream. We all want to own a home, however with the skyrocketing prices in the housing market and the rising inflation rate, I am afraid that this part of the dream is soon coming to a close. Unless, the rates in the housing market begin to reflect the economic times that we are in, I am afraid that many homes will sit, unoccupied for years to come. I understand that in the ideal world, people would make back what they have spent on their home, but with times the way they are, it has become unrealistic to think that people can afford to pay the higher prices of years ago when buying a home today. If you really want and need to sell your home, then you must not look at what you paid for that home when times were better, you must now look at what people can afford to pay for that home today, which is inevitably going to be less.
Keep in mind whether you are buying or selling a home, that the market is different now than it has been in the past. If you are selling, price your home to sell and if you are buying, try to talk the seller down and watch for mortgage rates that are too good to be true.