What is happening here?
Something is going on
That’s not quite clear
Somebody turn on the light
We’re gonna have a party
It’s starting tonight
Oh, what a feeling!
When we’re dancing on the ceiling
Lionel Ritchie, 1986
For weeks now, I have been thinking about this awful late 80’s (is the “6” year mid- or late of a decade? I confess, I don’t know) ballad and its balladeer every time the words “debt ceiling” graced the pages of a newspaper, website, blog or were spoken on the radio or television news. The problem was, and frankly, remains, serious, but Congress and the POTUS did what I told you they would do weeks ago: they put aside the partisan bickering and settled things all with thoughts of doing what was right for the American people. Or not. I will not let allow accusations of me being an itinerate bullshit peddler to settle in before I lift the curtain and say that, no, I don’t really think this is settled, I do think it will be an election issue and nothing was done to help the economy or the toddler-like stumbling of the recovery.
I want to share the mortgage implications of this with you. But, first, a little sampling of debt ceiling news:
“bipartisan agreement” – WSJ
“disappointed” – The Guardian
“questions linger” – msnbc.com
“on the path to enacting a balanced budget amendment” H. Coble (R-NC)
“debt ceiling deal disaster” – The Hill
“confidence in US damaged”
“debt ceiling debate doesn’t affect mortgage rates” – the Detroit News
Let’s focus on that last one and ask just how things are going in the mortgage market. Here’s what we know: uncertainty (and boy, have we had a lot of it) leads to a nice market cliche “flight to safety.” That usually means bonds, treasuries first and mortgage bonds next. We have seen that in the last couple weeks. But what about today as the Senate is (I love headline words — so much) poised to vote on the debt deal to stave off a US default? Short answer: mortgage backed securities are up today and mortgage rates are continuing a trend of being lower overall week over week. Translated: the refinance boom (did you know we are in one?) continues.
What should you do? If you are considering buying a house, wait for it, wait for it, there is no better time than right now. Rates are low while housing prices remain depressed. What if you want to refinance? You should — N O W. Call me 847-920-8030.