The short answer is this low. Rates have trended lower for the past week due to much of the uncertainty with the debt ceiling issue as well as some of the economic reports that were released showing the economy is still on very shakey ground. Interest rates are back to their lowest levels in the last three years. Many borrowers dont know rates have dropped because the news has been focused on the congressional debate of the debt ceiling and the concern over a default.
Now that congress has agreed on a package and the president has signed off on it we are back to a situation where default is not something that is an immediate concern for US Bond investors. With the big default issue gone and poor economic data interest rates have dropped substantially over the past week. Last week we learned that the GDP of the previous two quarters was over stated and the economy actually grew at a slower pace than thought. We also have seen with the consumer confidence and retail numbers that most people arent feeling very optimistic about our economic recovery...if there is one.
As it typically goes in the market as investors flee stocks due to concern over future growth they flock to the save investments of bonds and fixed interest investments. Investors have been buying up bonds and thus driving down the yeilds and home buyers and folks refinancing are now a direct beneficiary of this behavoir.
So you may not have heard rates are at their lowest levels yet on the national media networks I am here to tell you its time to act. By the time the national media picks up on the low interest rates its typically too late and the best rates have passed. If you get this story and know anyone who would benefit from knowing rates are really low again please forward or pass along.
I may not be around in the afternoon this week as its Seafair in Seattle and I will be trying to poke my head out of the office to watch the Blue Angels tear up the Seattle Skyline. Love those guys!
