Gary Shilling in a recent Forbes column (Dec. 6 issue) said that he thinks the markets massively over-reacted to Mr. Trump’s election. He points out that the root causes of weak economic growth (that have kept rates low) will remain. He also says that Trump’s proposed tax cuts and stimulus programs will be watered down by Congress; the expectations of an economic boom are overblown.
What this means for us, if he is correct, is that rates may fall again and even return to October levels.
Should buyers and borrowers wait to see if rates fall before moving forward with transactions? Absolutely not. Borrowers can easily take advantage of no-cost refi’s if rates fall.
No-cost refinances are easy to do b/c they require much less paperwork than purchases, and closing costs are much lower than they are for purchases (so it is easy for lenders like JVM to cover them).
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