The 30 year fixed mortgage rates are not a mathematical science as Wall Street would have us believe. There are many forces that create cause and effect in today’s market trends. In this unusual world wide economic environment we are encountering trends never before seen. Where do we go from here and how do we move forward so as to regain economic stability?
Most of America does not realize how much of our mortgage back securities are held by foreign entities. In order to keep mortgage rates low, we must foster a strong belief in the collateral backing this debt and keep these investments within our banking system. Many industries are beginning to retrench and put forth a smaller more profitable footprint. So it must be within our banking system and home mortgage market.
Lower mortgage interest rates will allow home owners once again to save money. When is the last time you’ve heard someone say that they are now able to put money in the bank on a regular monthly basis. This will create greater liquidity within the system and less use of credit. America’s confidence can once again be restored when we know we have money in the bank.
These lower mortgage rates over the next 24 months will lead to renewed spending and allow us to recover from this recession, or as I would say, near depression.
Once again, we are starting to see new housing starts and purchases from an over inflated inventory of existing homes. As reduced mortgage rates fuel this recovery, let us be wise about our savings and spending habits. I look forward to reporting to you in the near future my thoughts on the next trend in mortgage rates.
Written by Marty Cornbluth
The Mortgage Team - Aequor Funding Corp
Tel: 732-650-8696
www.aequorfunding.com
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