The Wall Street Journal reported that World Governments will require a combined $10.2 TRILLION of borrowing just to stay afloat in 2011. Over $4 Trillion of that is attributable to the U.S. alone. Sooner or later, investors worldwide are going to get nervous about this staggering level of debt, or they are going to find investments with better returns and/or less risk. At that point, rates will have to climb in order to get these investors to buy again. And this could start a vicious cycle that could really push rates to the sky.
Our point as always is “don’t try to time the bottom of the rate market”. Whether you are buying or refinancing, lock now while the “gettin’ is good” (and it truly has never been better).
You won’t care in the least 5 years from now if your rate is 4.625% instead of 4.375% if market rates are at 14%.