IE Business Daily Business news for the Inland Empire.
By Ed Hoffman
Last week, the feds announced that America’s unemployment rate was 5.4 percent, which is the lowest it has been since 2008. Good news? Of course – if it were 100 percent true, which I’m not sure it is. I’m not throwing a wild conspiracy theory at you, but what I am saying is that the feds manipulate the unemployment statistics and the market knows it. Even though we had this good news last Friday, the bond market went crazy and that shows us that investors got uneasy.
Then on Monday, the bond market did an about face and went the other way – presumably because of comments made by one of the members of the Federal Reserve Board of Governors, who suggested something that the feds should be less transparent than they already are. That’s right: less transparent! Understandably, this spooked the market and investors pulled out their money.
Consequently, mortgage rates went back up. Since that time last week, now rates are recovering again and down they go again, showing that there seem to be some inconsistencies between what our government is telling us and what the financial markets really BELIEVE.
So the good news is, everyone who was worried they missed the boat on a home loan because they were unable to qualify when interest rates were low can rest assured that the rates are low again. Bankrate reported this week that the interest rate for a 30-year fixed rate loan was 3.99 percent, and a 15-year fixed rate loan has an interest rate of 3.17 percent. If you qualify for a jumbo loan (which you will need if you want to buy a home priced at $417,001 or more in Riverside or San Bernardino counties), the interest rate is just a little bit more at 4.07 percent. So as I say on my radio commercials, “It’s time to jump in!” If you look hard enough, you can find imperfect economic conditions anywhere and you shouldn’t let it stop you from attaining your personal homeownership, investment or wealth-building goals. Do members of our government do that? Of course not. This is one thing I advocate following their lead on.
Ed Hoffman is the host of the Main Event on AM590, which airs Saturday 9:30AM- 10:30AM and Sunday 4:00PM- 5:00PM. Follow him on Twitter @EdHoffman, and like him on Facebook by searching The Main Event 590.
