30-year fixed rate mortgage 4%?
This is a pretty incredible deal for someone who was going to buy anyway am I right?
Surely rates are going to be much higher and not much lower in that time period.
What do others think?
When 15 year mortgages hit 3 percent, we’re in.
Yes, I agree, a great deal!
I just locked a 30 year fixed rate mortgage at 3.91% A freaking 30 year fixed rate at 3.91%! The rates could potentially go down a little more, but I can’t imagine a 30 year rate much lower than that. My current rate was 5.0%.
For comparative purposes, consider that in the 1960s the discount rate was 4+% and the mortgage rate was 5.5-5.75%.
In terms of the big picture (what to do) - I have no idea, but I'm leaning to borrowing a lot and locking in a long rate of 4% being smart. This is a pro-inflation view (meaning, I think inflation is likely), that might be wrong, so YMMV. In a deflationary crisis, a big mortgage at 4% when incomes are falling consistently could be a terrible move - IF you think they really will make you pay.