March 14th, 2010 12:52 PM by BILL WILBANKS
A long time mortgage rate forecaster went for an eye exam last week and as the doctor was finishing up asked him, "So, how did I do doc? Does it look like I need stronger contacts?"
Smiling, the doctor turned off his equipment and said, "I can't believe you waited this long to come in to see me, Ben. Both your forward and lateral vision has gotten much worse since your last checkup, so your current contacts can't be doing you much good...but as always your hindsight is nearly perfect."
Ok, I worked hard for that one folks. But, all you procrastinating fence sitters out there (love using double entendre when I can), opportunity and decision time may soon be upon you once again.
Apparently even the so-called experts, talking heads and sometime self ordained financial guru's can't get together on whether interest rates are going up, by how much and how fast after the Fed's stop artificially supporting the mortgage market. Well, the crutch gets put away March 31. Few believe rates will sink lower.
The latest market factoid (heard the rumor/not seen the source) being kicked around is that as much as 37% of U.S. mortgages still carry rates higher than 6% today. Whether due to being upsidedown in equity or off the planet for a while these folks haven't taken advantage of lower rates. That's remarkable for those that still can with both fixed and ARM rates having been at or below 5% for at least a year. The difference between a $200,000 payment at 5% vs. 5.5% is nearly $62 a month...and some folks are still waiting? On what? Want to read more?