Low Rates Forever?

If you need to refinance or buy a home, Quicken Home Loans is offering a 30-year FRM at 4.4% at 0.25 points. It sounds like a good deal to me and I'm sure other lenders will match that rate. Why are rates so low? The short answer is this: the economy stinks and even with Congress and the White House working out a debt deal, it seems (24 hours later) to matter little. (Just wait until Friday when the new jobs report comes out.) On Wednesday it felt as though we, as a nation, are headed toward what some analysts call a 'Growth Recession' where the economy grows (barely) and unemployment increases or stays the same. Meanwhile, the states continue to cut jobs (except North Dakota where things are booming) and the Feds (thanks to the debt deal) soon will follow. This means that it's time for the private sector to shut up about “the uncertainty” caused by the debt ceiling crisis and start hiring. Or was all that whining about the debt crisis just an excuse not to hire? Rates are at rock bottom levels and may test new lows. NOTE TO THE PRIVATE SECTOR: Go out and hire someone already. Stimulate the economy. I dare you. Maybe that person will buy a house and take out a mortgage.