I happened to catch a recent episode of the TV game show “Deal or No Deal”. Ironically enough, the premise of the show is to beat the banker. A contestant selects a suitcase with a hidden dollar value inside. There is a board that displays all of the dollar amounts that are hidden in all of the suitcases, ranging from $1 to $1,000,000. After each series of selections, the “banker” offers the contestant a certain amount of money to stop – take the money and go home a winner. The contestant is gambling that he has a one million dollar suitcase. Every time he eliminates a suitcase with a low dollar amount, the odds of winning the big money increase and the offers to stop from the banker increase.
Well this contestant gets down to two suitcases. One has one million dollars. The other has $1. The banker offers $603,000 to stop. The contestant says “NO DEAL!” and takes the chance that he has the big money suitcase.
He won one dollar. Sometimes, you roll the dice one too many times. It’s human nature to ignore what we have and focus on what may be even better. The art of speculating.
Today, interest rates have reached some of their lowest levels in six years. However, the big story in the last 24 hours has been reports that interest rates may drop even lower. Some reports say as low as 4.5%. Our phones at Alamo Premier Mortgage Group have been ringing off the hook with questions. It is interesting to note that these reports were quoting unnamed sources. Did not matter. Pure speculation entered the lending and financial dialogue and the topic made it’s way onto the cable news shows. Would this scenario jump start the housing market?
The speculation revolves around government intervention. Again. It is worth noting that the Treasury and the Fed do not set interest rates – markets set interest rates. It is also worth noting that the best intentions of government do not guarantee anything. In fact, they often produce unintended consequences. I found these comments from a Missouri mortgage broker very interesting and insightful.
Bottom line – interest rates are at the lowest levels in years. Could rates go lower? Sure, but it’s not guaranteed. Let’s hope they continue at these levels. If you are considering refinancing your home, check out our latest INTEREST RATES or just click HERE to get started. There’s no time like the present. The present reality is a great deal. If you wait, and speculate, you may end up with no deal.
More questions? Just give me a call.
Greg Matson – Vice President
(888) 340-1390
Tags: 4.5% interest rates?, Alamo Premier Mortgage Group, Austin Mortgage, Austin Real Estate, Austin Refinance, Best Interest Rates, Best time to refinance?, Dallas Mortgage, Dallas Real Estate, Dallas Refinance, FHA Refinance, Greg Matson, Houston Mortgage, Houston Real Estate, Houston Refinance, Lower Mortgage Payments, San Antonio Economy, San Antonio FHA, San Antonio Home Loan, San Antonio Home Purcuase, San Antonio Homes, San Antonio Interest Rates, San Antonio Mortgage, San Antonio Mortgage Broker, San Antonio Real Estate, San Antonio Refinance, San Antono Housing Market, Should I Refinance?, Should I Wait to Refinance?, Texas economy, Texas FHA, Texas Home Loan, Texas Homes, Texas Housing Market, Texas Interest Rates, Texas Mortgage, Texas Real Estate, Texas Refinance, Will Interest Rates Drop?
