Today was the first day in history that the DOW has traded up and down over 1000 points! What a ride, and if you aren’t too tired to read a little more maybe I can make some sense of the current craziness!
#1. “There is only one ‘end of the world’ and this ain’t it!”, stated one pundit on CNBC today. I liked the quote because it puts this mess in perspective. If everything always went up there would never be any opportunities! The question isn’t, “How low can it go?”, the question is, “At what point is buying a great bargain!?!?” I think maybe we hit that point today and investors started buying!
#2. Why are mortgage rates going up??? SIMPLE – Investors aren’t buying mortgage bonds right now. Mortgage is a four letter word until the market feels this mess is at least settled. We are getting there but not quite yet. Rates have to go up to get investors to buy mortgage bonds again…
#3. Tega Cay real estate is a great place to put your money! If you don’t want to buy stocks and are a little afraid to buy bonds… buy real estate!! This whole area is growing and the long term risk to your money in real estate is low. I have been told personally that many investors have started buying real estate in this area because they don’t want to keep their money in banks. Think about it… great mid-term potential, low risk and flexible options (live it, rent it, sell it, etc.)
Where are rates right now?
- Conventional 30 Year fixed Avg – 6.75%
- FHA 30 Year Fixed – 7.00%
- 5/1 ARM – 6.375%
The rates above are not a rate quote. A rate quote is based on loan size, credit score, LTV,
property type, and loan purpose. If you would like an accurate rate quote for your specific scenario please call Olan Carder at 980-721-7478.
Olan Carder contributes articles to Homesfortmill.com on a regular basis. He works in the Charlotte NC metro market which includes Fort Mill, Tega Cay, Lake Wylie SC,
Olan has recently started his own mortgage blog. If you are looking for more mortgage tips and information, check out his new blog at http://charlottemortgageonline.com/.