Fed Chief Warns Homebuyers: Time To Lock In Those Low Rates
recent remarks drive us toward two conclusions. “In light of the current low interest rate environment, we are watching particularly closely for instances of ‘reaching for yield’ and other forms of excessive risk-taking, which may affect asset prices and their relationships with fundamentals,” he said, according to the FT.Now, first, with many US stock indices at all time highs despite slow economic growth, this is something of a yellow flag. If the Fed gets out of the business of inflating the stock market, equity investing is not going to be quite as much fun.Second, if you’ve been toying with the idea of refinancing your home or taking out a mortgage, it’s time to get in gear. US interest rates seem headed up after their long, sedated nap. Locking in a nice long term mortgage at some of the lowest rates since time began seems like a good idea, and if Bernanke is right, these rates won’t last.