Financing Homes in Lake Tahoe and Truckee since 1992.

Lake Tahoe Home Loans and Lake Tahoe Mortgage Loan Rates-October 12, 2013

Lake Tahoe Home Loans and Lake Tahoe Mortgage Loan Rates-What do we do now?

As was the case the week before last, there was very little movement this past week. If we can manage to generate some excitement over what turned out to be a 4 basis point upward move (for the 6-month Treasury bill), then one supposes that this was our week in the sun. But in truth, the slight surge in the shorter-term Treasury securities meant very little. Neither did the minimal changes in the cost of a barrel of crude oil or the meager changes in currency exchange rates.

We might assume that exchange trading has fallen asleep due to lack of participation by international traders. Better, however, to assume that—where government workers are involved—no one is there tending potential trades. Or perhaps no one wants to trade in a market that is, to all intents and purposes, shut down.

Still, mortgage rates are sliding south—not that we see much of a gain in purchase money mortgages as a result. Refis have picked up, bringing cheer to lenders. But we just won’t expect a noticeable increase in home sales, as potential buyers wait in their economic bomb shelters for an all-clear signal. There is simply too much uncertainty in the air.

To the Contrarian, though, this all creates a great time to find homes whose potential sellers are growing anxious and are willing to make favorable concessions to able buyers. At the least, it’s probably a good time to look at available homes, ready to make an offer when the timing feels right.

Also with interest rates still historically low and having decreased almost 29 basis over the past 3 weeks it could also be a great time for those who haven’t already done so, to refinance their existing mortgage.

Surely, in fact, there must be a clever and profitable investment play in today’s skewed markets, but no one seems to see one.

We, on the other hand, are likely to devote this time to discussion with clients who wish some guidance on what to do when the ‘on’ button is pushed again, allowing the economy to grow, deals to transpire, real estate to be built, and loans to be written.