After the recent Presidential election, the buzzword regarding the economy seems to continuously be “Fiscal Cliff” and what will happen to our market.
The market’s take is that the Fed will continue its recent behavior of Bond buying until substantial improvements are shown.
The significance of the “Fiscal Cliff” is small business tax breaks are going to expire, taxes related to Obama’s health care law will begin, spending cuts will go into effect, and jobless benefits will expire, potentially sending our nation into an estimated debt of $600 billion for 2013.
Where are the Home Loan Rates in all of this? A good rule of thumb to keep in mind is weak economic news usually causes money to come out of Stocks and into Bonds, helping Bonds and Home loan rates improve. Strong economic news normally creates the opposite.
Bottom line is: now is still a great time to buy a home or refinance, because home loan rates continue to be at an all time low.