Get Ready For Sub Prime Mortgage Part 2, Interest Rates Down To 4.01%

October 01 00:00 2011

New York, October 1 (RainbowNewsLine.com) – The US Real estate market is showing signs of recovery as the interest rates on mortgage products have fallen to a low of 4.01% from the erstwhile 4.8%. Markets are reacting positively to this news while many analysts are being skeptical about it.

Financial markets sure have a funny way of working. It is surprising that the very same thing that caused the market collapse of 2009 is being touted as the savior. The real estate market has off late been showing a positive outlook. Before you decide this is good news and start celebrating, it will also be worthwhile to realize that this entire so called boom is manufactured and may come up with an even bigger bust.

The refinancing market has seen an 11% increase as more and more customers are making a beeline to bring the mortgage payments lower. However, isn’t this how the crisis started in the first place? Easy availability of credit to people with unstable financial backgrounds cannot be a remedy to national financial woes. The same things have begun to surface again. Banks are willing to lend money at low interest rates and are slowly moving back to the same lax standards that brought the world to a standstill in 2009.

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