Mortgage Rates Up On Mini Stock Rally

This gets right to the nitty-gritty:

"The big pension funds that are moving money from bonds to the stock market are causing rates to rise," says Bob Moulton, president of Americana Mortgage in Manhasset, N.Y.

Moulton doesn't seem as concerned about rising rates as other experts. Soon investors will get a reminder that the situation isn't as rosy as it seems and they may seek the safety of bonds once again.

"This is a normal minicycle," he says. "I think rates will settle down again."
The Federal Reserve remains on a mission to keep rates low. Unless the jobs market "improves substantially," the Fed will continue to purchase $85 billion per month in Treasury and mortgage bonds, according to the announcement released by the Federal Open Market Committee after it wrapped up its two-day meeting Wednesday.

When the Fed pulls back on the assistance, there's no doubt rates will spike rapidly, mortgage professionals say.

So what's a borrower to do?

With so many outside forces influencing rates, borrowers should take advantage of the low rates while they can, says Derek Egeberg, a branch manager at Academy Mortgage in Yuma, Ariz.

Read the whole article (opens in a new tab so you may easily comment here): Mortgage Rates Get Boost From Stock Rally |

Inflation is historically low too, and the Fed is trying to increase employment, which puts pressure on price inflation; so, if you lock in a low mortgage now, you could end up paying off in more inflated dollars, which would mean you'd actually benefit more than would otherwise appear to be the case when only calculating your investment using the current, February 2013, value of the dollar.

If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.

Hill & Usher (PropertyPak™ is a division) has many insurance offerings. See our menu above for more info and links.

Did this post help you? Let us know by leaving your comment below.

Note: This blog does not provide legal, financial, or accounting advice. Seek professional counsel.

Furthermore, we, as insurance producers, are prohibited by law from disparaging the insurance industry, carriers, other producers, etc. With that in mind, we provide links without staking out positions that violate the law. We provide them solely from a public-policy standpoint wherein we encourage our industry to be sure our profits, etc., are fair and balanced.

We do not necessarily fact checked the contents of every linked article or page, etc.

If we were to conclude any part or parts of our industry are in violation of fundamental fairness and the legal standards of a state or states, we'd address the issue through proper, legal channels. We trust you understand.

The laws that tie our tongues, so to speak, are designed to keep the public from losing confidence in the industry and the regulatory system overseeing it. Insurance commissioners around the country work very hard to analyze rates and to not allow the industry to be damaged by bad rate-settings and changes in coverages. The proper way for people in the industry to deal with such matters is by adhering to the laws, rules, and regulations of the applicable states and within industry associations where such matters may be discussed in private without giving the industry unnecessary black eyes. Ethics is very high on the list in the insurance industry, and we don't want to lose the people's trust. That said, the industry is not perfect; but what industry is?

For our part, we believe in strong regulations and strong regulators.

We welcome your comments and ask you to keep in mind that we cannot and will not reply in any way or ways where any insurance commissioner could rightly say we've violated the law of the given state.

We are allowed to share rating-bureau data/reports and industry-consultant opinions but make clear here that those opinions are theirs and do not necessarily reflect our position.