Today we offered a 30-year mortgage with 1 pt at the astonishing rate of 3.875%.I have written this many times, but it is worth repeating. Lock in your mortgages now at these rates. These rates will not last. Within a year or two they will be much, much higher. If Bernanke starts printing in an out of control manner, making your mortgage payment will feel as painless as buying a Big Mac at McDonald's.
...and I find that to be an ingredient for a dark day.
***
I used to be teased quite a bit for buying silver and gold a lot, especially these past two years, by my colleagues. Then I sold a 10-ounce bar last week, that one of them sold me in late 2008, for a 90% profit. I'm not being teased anymore. :)
***
I think the 1-year LIBOR may go lower, maybe to 75 bps.
Wednesday, October 6, 2010
30 Year Mortgage at 3.875%
Mike Dunton, senior VP at Mt. McKinley Bank, emails:
Subscribe to:
Post Comments (Atom)
What kind of risk do the banks face with these low rates if inflation picks up in 2011?
ReplyDeleteIf the inflation rate is higher than these low fixed rates, they should have some real losses, right?