You Spin Me Right Round
This week’s musical inspiration comes from the 1984 hit single from Dead or Alive, “You Spin Me Right Round.” The song speaks of being turned around by many sources much like our “talking heads” on national cable news networks, regarding things like tariffs. It truly depends on which station you are watching, and they certainly range in opinions from CNBC to Fox News. By watching these news networks, you would think they were broadcasting about two different countries as opposed to simply reporting the news about ours. Each of these networks has its own spin on the subject, which makes it even more confusing. It certainly gives folks something to talk about at social gatherings, especially if they are tied to one of these networks. Whatever happened to balanced reporting?
Now onto the recent tariff discussion. Yes, the President did execute his series of tariffs. On the surface, this can be viewed as inflationary, and higher inflation tends to result in higher interest rates both with mortgages and the 10-year treasury, which I follow for the direction of mortgage rates. His move yesterday was about half of what the “experts” thought and, in some cases, simply minimal in effect. The bond market has viewed this very favorably and has driven the 10-year treasuries to their lowest levels since October of last year and is now testing to go below 4.00%. The falling 10-year treasury will most likely result in notably lower mortgage rates over the next several weeks and may even give the Federal Government the ability to refinance its current debt to lower payments. Less government spending, i.e., lower payments on the debt coupled with already reduced operational cost, may give the 10-year treasury and mortgages an opportunity to go even lower. Lower mortgage rates will make purchasing a home much easier than what we have experienced for the past two years and may stimulate home purchases which have been notably slower. If these observations come to fruition, rates should move lower, which is a benefit for everyone and may also level our trade imbalances, which could also lower overall prices across the board. It is certainly a possibility. Granted, this is my economic opinion… but logic, not political partisanship, says this is certainly possible. Can we bring back Walter Cronkite when news was simply reported, and we were left to make our own opinion of what this news is really all about?
Remember… the BEST RATE… IS A LOCKED RATE… with a float down… ask me about our program that allows you to lock your rate and then float down if rates move lower.
Make sure you (or your buyer) get pre-approved before looking at homes so we can determine if you are looking in the correct price range and have you armed to submit an offer with a pre-approval letter!
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Blog post date: Thursday, April 3, 2025
