The credit union’s mortgage rates dropped to 5.375% this morning. Last time they hit this point, we decided to wait to see if they fell to their previous low of 5.25%. That was many a week ago.
Dang! Jump at it, or not jump?
Put in a call to my financial advisor. He said it was reasonable to expect rates to go back up and stay there. Mortgage rates, as he explained, aren’t closely tied to the Fed’s rates but depend more on the long-term prospects for the economy. In his opinion, the recession is On. Over the next year or so, he thinks things will get better-and he claims others think that, too-and so we can expect lending rates to rise.
Calculation: On the amount we owe, the difference between 5.25% and 5.375% is $16 a month. The difference in mortgage payments: more than $200 a month.
Rate grabbed.
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