Does Ben Bernanke, Chairman of the US Federal Reserve, know something about interest rates that the rest of us do not?
Maybe, but the likelihood of higher interest rates in 2010 and beyond is not much of a secret!
In a recent TIME Magazine interview, Chairman Bernanke says he refinanced his own mortgage a couple of months ago at 5%, and switched from a floating rate, which the Fed chairman said “exploded” in cost, to a 30-year fixed.
TIME: Do you have a mortgage?
Bernanke: Oh, yes, we refinanced.
TIME: Oh, perfect. When?
Bernanke: About 5%. A couple of months ago.
TIME: Good time.
Bernanke: Yes. We had to do it because we had an adjustable rate mortgage and it exploded, so we had to.
TIME: So, did you get a fixed rate at 5%? I think this might be the most valuable piece of information. (Laughter.)
Bernanke: Thirty years fixed rate at a little over 5%.
Although the motivations to refinance your home or finance a new purchase may vary from one family to another, it is clear that the low interest rates available today and the strong possibility of higher interest rates into 2010 and for several years to come is a strong motivation.
And for Buyers, lets not forget that low real estate prices will not last forever either.
If you are buying real estate or are considering refinancing your existing property, we can help! Give us a call at 305.450.0036
For more information or if you have any questions or comments, please send me an e-mail to: email@example.com or call me at my mobile 305.450.0036