Range Bound Interest Rates Remain Lowest on Record

There are no if, ands, or buts about it, home loan interest rates remain at some of the lowest recorded levels ever. The range we are currently enjoying appears to be a plateau leading well into the future, a conclusion that is not off base considering investors appear to be comfortable with the current yields being paid in secondary.

The ten year treasury yield remains on or around 2.000% which is incredibly low, yet investors are moving into the 10 year at signs of the yield climbing thereby creating the equilibrium experienced in todays market. In other words, investors are comfortable with these yields considering this economy and the future outlook.

That doesn't really say much for our economy... to say the least, and one msut wonder what the current Obama administration is going to do, because the jobs bill appears to be failing at face value and accused of being more of the same. While these rates are very attractive for homeowners, the simple fact that we are not seeing a return of new home buyers despite low real estate prices and low interest rates suggests the real estate market might be in for another correction.

If I am right about this and home prices are about to fall, those that are looking to refinance should do so while their equity positions are strong. Those looking to buy, you are responsible for holding up, or bringing down the current real estate market and home prices... while this is a true statement, we must understand most people would like to participate in this low price market, however due to unemployment and uncertain future employment, caution is the smart play.

So here we are... interest rates for home loans are at the lowest point on record. If you qualify... carpe diem.