Mortgage Rates Drop, You Donkey Get Your House Now

Bloody Hell Rates Are Down

Right listen up you panini heads. The bloody mortgage rates have dropped faster than my patience in a Michelin starred kitchen on a Saturday night. We're talking about the average 30 year fixed mortgage falling to 5.99%. It's about time some good news came around the financial markets have been drier than overcooked chicken for far too long.

Refinance Renaissance or Just Hot Air

Refinancing applications are surging like a bloody soufflé in a hot oven. Up 130% from last year can you believe it? People are finally waking up and smelling the coffee realizing they can save a few quid. But don't get ahead of yourselves you silly sausages. Remember what happened with Chinese AI Stocks Go Up in Smoke Fo Shizzle things can change quicker than you can say "Where's the lamb sauce?".

Buyers Rejoice a Little Bit

For those looking to buy it’s like finding a perfectly ripe avocado in a supermarket full of rock hard ones. More purchasing power. A buyer putting 20% down on a $400,000 home would save nearly $200 a month compared to last year. That's enough for a decent bottle of wine at my place – not that you're invited.

The Yun Factor

Lawrence Yun some economist apparently says millions more households could qualify for a mortgage now. But he also says most won't act immediately. Well that's about as useful as a chocolate teapot isn't it? It's like saying I could cook a decent meal if I felt like it. The potential is there but potential means bugger all if you don't actually do it.

Springing into Action or Staying Put

The real question is will this rate drop actually get people buying? So far mortgage applications for purchases haven't exploded. They're up a bit but not enough to make me shout 'Bingo'. It's like a lukewarm sauce – technically there but not really adding much flavor.

Don't Be An Idiot Sandwich

So what's the bloody verdict? Things are looking better but don't be an idiot sandwich and assume it's all sunshine and roses. Keep an eye on the bond market don't overextend yourselves and for God's sake do your research before you sign anything. And if you still screw it up don't come crying to me. I've got soufflés to rescue and reputations to maintain.