With respect to mortgages, people always ask me “Are mortgage rates going to go up or down?”  The honest answer is that both are equally possible, and defendable positions in this market.  For instance, I believe the economy is slowing down and therefore the Federal Reserve should cut the Fed Funds rate to stimulate the economy.  This may cause mortgage rates to go down.  Equally possible, is that due to the Feds move to cut rates is that the stock market is “juiced” by the cut and people dump mortgages to buy more lucrative stocks, thereby resulting in mortgage rates going up.

Anybody who tells you where mortgage rates are going with certainty is lying to you.  I have heard of mortgage brokers making promises like ” hey, close on this loan, the Fed will cut rates and you will be able to refinance lower in the future”.  Don’t buy it, he doesn’t know.

This is why the no-cost mortgage is the best mortgage product available.  It offers our clients more than just a mortgage, it gives them a mortgage strategy.  You get the best rate today, and if rates go lower, you will get the best rate tomorrow.