Response: Bernanke Easing Mortgage Rates for Consumer Rebound

A topic that has been major lately is the housing market. In Jessica Lewis's posting, she mentions an article where Bernanke (a guy who's no longer a stranger to my blogs) discusses decreasing mortgage rates. Both Bernanke and Jessica believe that decreasing mortgage rates will help homeowners by returning money into their pockets, thereby improving the economy. I agree with both parties; by lowering the mortgage rates, people are now able to afford their monthly payments with a little bit to spare. In addition, the housing market has been in a little bind lately, so plenty of people are seizing he opportunity of getting a home. However, people shouldn't be waiting so long because who knows how mortgage rates will move.

For example, although mortgage rates have been at record lows, they have become stagnant lately. During the week ending on April 5, rates remained basically the same with only a .01% decrease. Pennsylvania had a .8% decrease and Georgia remained the state with the lowest mortgage rates at 4.96%. Yes, these rates seem favorable, so it is only right for people to take advantage of these circumstances right now. Waiting for mortgage rates to go down even further could place you in an awkward position. Carl Walls, Florida Citizens Bank president, says "Don't wait for mortgage rates to keep dropping. Get the best you can and don't look back." I agree. In another article I read, it was noticed that the mortgage applications are increasing. This means that more people are getting bank loans to purchase a home than refinance.

Right now is a great time to use the opportunity of home buying. We have people in high places (i.e. Bernanke), financial professionals (i.e. Carl Walls), and even citizens (i.e. Jessica Lewis) who all agree that the mortgage rate decreases are creating the perfect time for home buying. I also agree with and support them all.

Sources:
1. http://jlewis45rmiblog.blogspot.com/2009/04/bernanke-easing-mortgage-rates-for.html
2. http://www.bizjournals.com/pittsburgh/stories/2009/04/06/daily20.html
3. http://www.reuters.com/article/economicNews/idUSNYS00498520090408
4. http://www.ocala.com/article/20090413/ARTICLES/904131006/0/news02