Despite the fact that it looks as though our trusty lawmakers are going to reach a last minute agreement on raising the debt ceiling, mortgage rates have really nowhere to go but up.
Most all the analysts are predicting higher rates in the very near term no matter what the government does regarding the debt crisis. If you are thinking about a mortgage or the possibility of refinancing, I think it extremely prudent to take action now. There is a strong possibility that if you were to look back six months from now you would be regretting the fact that you didn't take action six months prior.
The rates ending last week rose slightly to 4.55% for a 30-year fixed rate mortgage. It will be interesting to see how much higher they go this week following the lawmakers action. Should the government default tomorrow (Tuesday), it would be extremely hard to lock in any rates.
The alternative to facing any rate hikes in the future is to pay off your mortgage balance, which for me makes a great deal of sense!
V.K. [Mel] Melhado PA
Fine Home Specialist
Preview Naples Group
Premiere Plus Realty Co.