Here he is again! You guys said Jim’s information was easy to share and a great resource for your clients so here is another post by Jim Martin.
Because of the roller coasters we have been riding. In Pittsburgh, we have a classic old “trolley park” amusement park. This place is over 100 years old and was built to entice the city people to ride the trolleys to the end of the line where the amusement park was built. Anyhow, it has a great classic coaster, ‘The Thunderbolt.’ It is unique in that it leaves the station and immediately drops down a hill. It is built on top of a hill so you don’t have the immediate clickety-clack that you have with nearly all other coasters. From there, the Thunderbolt takes you on twists and turns and a spinning vortex out of which you think you will never exit. In the end, you hit a few more hills and come back to the station with your hair messed up, bugs in your teeth and thoughts of doing it again.
Not unlike the Thunderbolt, we are also experiencing a roller coast ride in the markets these days. We are sent down hills and put into the vortex of death from which we feel we may never exit. However, I have faith in both the American Economy and its consumers. Despite what happens politically, we will eventually come out of it. In the mean time, you may want to get better toothpaste and a stronger hair brush as we have some more turmoil to overcome.
A sign of this turmoil the interest rates on home mortgages. Just today, we learned that rates have hit an historic low. Since records were started in 1971, we have never seen rates on 30 year fixed rate loans as low as they are now. If you have any financing to do, if you have any loans outstanding, if you have any projects up coming and you are not talking to your lenders NOW, get off your damned butts and do it today. We are at the bottom.
“They can still go lower” you may say and you remain on that fence. It is technically possible, but even if they did, it is unlikely they will go much lower than they are. We are in unchartered water and the bond market does not like to be here. When the rates do start to go back up, it will not be a slow nice climb. Like my son going for his swim lessons in a cold pool, he wants to get out as soon as possible.
In summary, we are at a unique position in the market. Borrow any money you need or refinance all of your debts NOW.
Jim Martin, CMC, CRMS – NMLS 145336