March 26th, 2010 11:15 AM by Joan Rusco
We have been urging our Minnesota and North Dakota Veterans to make a decision soon about buying or refinancing a home with a VA Loan. For severa l weeks we've been writing about the probability of VA loan and other mortgage rate increases: here they come. The headline screams Debt Fears Send Rates Up. What's happening in Washington will make VA loan rate increases impossible to avoid. The reason is the spending spree our federal government has taken on. Add to that the unfunded Medicare and Social Security entitlements of over 100-trillion dollars and you start to get the picture of why international investors are having serious second thoughts about this nation's economy and our ability to ever pay down debt.
This week foreign investors turned their backs on a treasury auction which resulted in bond prices going down and rates moving up (remember anytime bond prices move down rates go up). This could spell serious trouble for the US housing market as mortgage rates have also started going up. This, coupled with the ending of the Federal Reserve's program of buying mortgage backed securities, will likely continue pushing VA and other loan rates upward.
We at VALoansND and VALoansMN have begun a serious campaign urging our clients to reach out to other Veterans, their families and friends, advising them that a mortgage refinance, a chance to buy a home, at these historic low rates is passing. Yes, we want the business but even moreso, we want any qualifed person to not miss this fading opportunity to save tens of thousands of dollars.