Mortgage rates, the debt ceiling and the economy
Mortgage rates declined by a quarter point from Friday not so much do to the agreement on raising the debt ceiling but due to slowing economic growth. Today's "surprise" report that consumer spending declined in June won't do much to raise rates either because basically, bad economic news is good news for mortgage rates.
So basically, if you currently happen to be in the market to buy a home and if you have a job and personally feel secure about your situation, you are in a sweet spot because not only are Charleston home prices attractive but mortgage rates are super attractive and what that means is that you can either buy a little more home or lower your payments.
To put it another way, when mortgage rates are down, affordability improves.
How does 30 year fixed rate loan at 4.25 percent FHA / VA and 4.5 percent conventional sound to you today.
Now just a quick word about the results of the debt ceiling "crisis", austerity will be the new buzzword.
Frankly, in my opinion, we could use a little more prosperity. That would solve a lot of problems.