Charts Schmarts…What’s In It For Me?

Now you all know that I am not really into the financial statistics and well just the financial aspect of homebuying…that’s just plain boring (so I leave that up to Steve cause he actually Likes that stuff)…anyway, with all of the economic news of late, even those of us who are “financial graph challenged” are asking the question: What Is Paris Hilton Wearing Tomorrow er What does the economic news tell us about homebuying?

Well, traditionally mortgage rates follow the bond market.  So, during weak economic times (like right now), folks who invest tend to pull their money out of the stock market and put them into Bonds, which means the bonds go up in value… and correspondingly … mortgage interest rates go down.

When there is strong economic news a float, folks that invest put their money back in the stock market (cause they are brave, brave souls) and then the bond market goes down in value…causing interest rates to go up. ( I know, hard to understand the ups and downs right?)

So, when Standard and Poor (a credit agency that rates countries and states and Big Stuff  like that), decided to downgrade our credit rating from AAA to AA+ last week, lots of folks decided to pull money from their stocks and invest in Bonds and interest rates are near record lows again.

What does that mean to you? Home Mortgage loans remain at some of the best levels we’ve ever seen (and believe me…Steve and I have seen a lot…being almost nearly old people and all), so with Home Prices being down all along the Wasatch Front like they are…well, now is the time to get off the fence, sink your feet in the grass, and put down some roots….or buy a home, whichever is more comfortable!

Til later, ciao!

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