Current Mortgage Rates May Represent a Fleeting Opportunity

When markets are volatile and the economy is uncertain, it is easy to take a wait and see attitude toward financial decisions -- especially major ones such as buying a house. However, it is precisely at such times when opportunities can be greatest. To think of it with even more urgency, sometimes failing to act can cost you for years to come.

In this case, the opportunity comes in the form of mortgage rates. Current mortgage rates are a little higher than they were earlier this year, but are still at levels so low they had never been reached before this year. It is important not to get complacent about those low mortgage rates. Long bonds have been rising steadily over the past several weeks, and mortgage rates tend to respond to many of the same conditions as bond rates.

Certainly, for anyone with the opportunity to refinance, the decision should be a no-brainer. You have already made the big decision -- committing to a house and a mortgage -- so now you just have to spend a little time going through the process of refinancing.

As for potential home buyers, this is a bigger decision than simply refinancing, but if you are a first-time home buyer, you have the added incentive of an $8,000 tax credit. None of these conditions are permanent -- and if you don't act now, there's a good chance you will miss them when they are gone.

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