Mortgage rates spike up

 

 

One of the bright spots in this recession has been the steady decline of  mortgage rates and the ongoing opportunity to borrow at very cheap rates.   Yet, there are concerns looming among many astute economists and market observers about the massive overspending by the federal and state governments which - the arguments go - will eventually lead to higher inflation and higher interest rates.  The question they say, is not IF inflation and interest rate will rise - but WHEN and HOW MUCH.   A read of their articles and papers conjures up an image of a massive and growing, underlying pressure that is building beneath the financial-earth that will eventually erupt, spewing a bigger dust-storm than Mt St Helena.   So it's not surprising that any spike upwards in interest rates tends to get the fence-sitters off the fence and into action...namely a rise in interest rates leads to a surge of mortgage refinancing and to a spate of real estate buying to lock in the lowest prices AND the lowest interest rates we've seen in more than a decade.  If the pundits are correct, and interest rates and inflation will be heading north in a meaningful way, then TODAY is the best buying opportunity of a lifetime. Give us a call on Vermont real estate and we can show you why.