If you’re thinking about buying a home or planning to refinance, act now so you can lock in a mortgage rate. Mortgage rates have been at historic lows for months. But if lawmakers can’t reach an agreement on raising the debt ceiling, rates could rise higher.
According to experts, a government default would cause US Treasury bond prices to drop. An analyst from Bankrate.com states that the federal government’s borrowing rate is the baseline from which all other borrowing rates are determined. In essence, if the government’s borrowing costs go up then everybody else’s borrowing costs will go up as well.
Even with a short-lived default, rating agencies have indicated that they will downgrade the federal government’s rating. As a result, consumer and business rates would go up because the government would be forced to pay higher rates to bond investors.
On our blog, we’ve talking about how it’s a good time to purchase real estate due to low prices. Well, now it seems that purchasers have another incentive to purchase real estate at this time.
So far, the debt ceiling debate hasn’t affected mortgage rates. However, if the government does default, it’s going to be real hard to lock in a rate.
Basically, if you don’t take action now, you could regret it 6 months from now.
With the ongoing foreclosure crisis, high unemployment rates, and now the debt ceiling issue, we are certainly living in troubled times. While there’s occasional good news related to the South Florida real estate market, it takes particular know-how and experience to safely navigate these troubled waters.
At Alvarez & Barbara, LLP, we represent buyers, sellers, lenders, borrowers, and developers with real estate matters. This experience allows us to understand legal issues from various angles to effectively advocate our clients’ interests. No matter what you or your business’s real estate needs are – think of Alvarez & Barbara, LLP, and contact us for a free consultation.
Consider Your Options. Contact Us Today.
We are certainly in difficult times. At Alvarez & Barbara, LLP, we understand all of our client’s individual needs and pride ourselves in providing high quality service.
Call us today toll free at 1-866-518-2913 or at 305-263-7700.
About the Author – Gabriel de las Salas is an attorney with the law firm of Alvarez & Barbara, LLP. His practice is focused on general civil and commercial litigation, including personal injury, insurance claims and real estate disputes. Mr. de las Salas received his B.A., cum laude, from the University of Florida, and his J.D., from Stetson University College of Law.