25 Sep QE3 Benefiting Mortgage Rates… For Now
Well…. So far, QE3 has certainly achieved its goals of keeping long term mortgage rates low. The concern will soon become when the goal of increasing inflation on asset prices (stocks, home prices, etc.) takes hold. When that happens, mortgage rates are sure to move higher. In the meantime, people now have the opportunity to secure the lowest mortgage rates in history. Consumer confidence reported a jump this morning showing that people are feeling better about their financial futures. This is another intended benefit of QE3. When people see their 401Ks moving higher, they are more confident to make financial decisions that will in turn benefit our economy and keep employer hiring. Right now is a great time to secure an interest rate, so we will continue with a locking bias.