Low Texas Mortgage Rates

The big news this week is that the low Texas mortgage rates are back in the 4s. The suprising thing is that this wasnt supposed to happen. All of the experts have expected that the Texas mortgage rates would start to rise with the current mortgage rates the way they are. Current low texas mortgage rates are the result of the fed slowing down on their buying schedule of mortgage backed securities. Stock prices are still hovering at the top of their range, and oil prices have gone way up, a sign that inflation fears are in the air. None of this seems to matter.

Mortgage bonds usually do best when bad news abounds and fear is in the air, right now all the signals are mixed. Housing is still a mess and unemployment is likely to continue to be bad through all of next year. But there are other signs that business is returning to a more normal pattern. So the question comes down to, are these low Texas mortgage rates the start of a bigger move down, or the last gasp before mortgage rates start to rise?

Low Texas mortgage rates were in this low range earlier in the year up to the beginning of the summer when mortgage rates surged higher. Since then we have been back in this range periodically, but it is usually for a short and fleeting time before the mortgage rates start to go higher. I would not be surprised if this happens again this time. Usually the best mortgage rates don't last that long, but at the same time, I expect the low Texas mortgage rates to stay affordable for the long term. The market is starting to realize that the economy isn't going to bounce back to where it was and that the Fed is committed to keeping short term mortgage rates low for an extended period of time. And even though oil and commodity prices are still very high, the conventional wisdom is starting to see that inflation isn't an immediate threat. In order for housing to recover, low Texas mortgage rates have to stay low. So I don't expect rates to go up any time soon, but sooner or later though eventually they will have to. But the low mortgage rates like we have now are not likely to last. If you are looking to refinance your home here in Texas. This is a great time to do so.

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