While it is presently possible to lock in fixed-term mortgage rates for up to half a percent lower than variable rates, questions are being asked as to whether now is really the time to be doing so. As fixed rates have hit their lowest average levels in months, many new and existing mortgage payers have been encouraged to lock in the attractive rates.
The real problem is the fact that although mortgage rates and indeed property values seem to be plummeting with no end in sight, such is in fact the sign of an economy in trouble and an uncertain future for citizens and homeowners across the board. Economic troubles on home soil, massive unemployment levels and the continuing crisis overseas are all having an effect on the current average rates, resulting in a silver lining to the ongoing cloud that may prove to have a few sharp edges.
The simple fact of the matter is that those looking to lock in rates now are attracted by the appeal of long term value and stability, but the unfortunate truth is that neither are in any way guaranteed. Those who qualify for a high quality refinance may save a packet on their current payments, but those looking into new loans are being advised to consider the consequences of taking on any additional long term debt in the current climate – even when rates seem too good to pass up.
Of course, the rock bottom rates will not be around forever and predicting the future is a little like rolling the dice, though with national interest rates announced as being kept near zero for at least another two years, those at the very top level seem to believe the current trends are far from over.