The proverbial question every buyer who is in the loan process has is “Is this the best time to lock in my rate”. The rates are creeping up but still under 5%. Well, Warren Buffett, one the wealthiest and most highly successful investors is “locking” in now. His Berkshire Hathaway Company just sold $1.5B in fixed debt, mostly in 10-year Notes, in order to refinance their adjustable rate loans. Mr. Buffett has not made comments on the move – but it is clear to us that he sees rates gradually moving higher over time as the US economy improves. Business Week states “The market scrutinizes Buffett’s moves very closely and this would indicate he’s thinking interest rates in the longer term may go up,” Vijay Chander, Hong Kong-based head of credit strategy at Standard Chartered Plc, said in a phone interview. That’s consistent with our house view that the U.S. economy is improving.”
“The world’s most successful investor locked in interest payments on most of the debt as a report showed U.S. manufacturing expanded in December at the fastest pace in seven months, spurring confidence the world’s biggest economy is gaining momentum. Former Federal Reserve Governor Frederic Mishkin said yesterday that while the central bank will complete its $600 billion bond-purchase program, a third round of so- called quantitative easing to spur growth is unlikely”
So, buyers it is a great time to buy a home and lock in with a great wait. It looks like the rates will probably be holding steady or increasing. Search 24/7 on www.cbbaker.com . Call and we can send you instant emails when something in your price range hits the market. Happy Buying.