Psssssst! In case you haven't heard.....rates are going up!

That's probably not what you want to hear....but it's the truth - there, I said it.


I actually had someone inquire this week about rates on a refinance who, after finding out what the rate would be, stated they would wait until 2012 for a lower rate. They were looking for a rate close to 4%! I wasn't sure what to make of that comment.  I think everyone is so "spoiled" by the low rates - I mean, come on....lowest rates in 50 years....who wouldn't be spoiled!  But as they say, all good things must come to an end.


Really, this isn't completely true.  While everyone likes a good interest rate, the increased rates are actually a good sign.   Higher interest rates show that there is economic recovery happening....and isn't that what we all want?  Think about it.  The slight increase in rate isn't nearly as much of an impact on the consumer as a stimulated economy.  If unemployment drops and housing values rise - won't that have much more of a positive impact?  Rising rates are a sign of better things to come.


Truly, I would be more concerned with actually qualifying for a mortgage than the interest rate itself.  Underwriting standards are the tightest they have ever been with no sign of loosening anytime soon.