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Important information about mortgage rates and the near future!

As you know, every minute there is someone somewhere talking about the debt ceiling negotiations and what will happen if Congress does not agree to raise it.

Although the odds on Congress not resolving this issue by August 2nd are very slim, there is one universal consensus that interest rates are most likely going to rise regardless of what happens.

The school of thought is that if the debt ceiling is not raised, crisis in the markets will ensue and interest rates across the board will rise rapidly.

In the event that Congress does increase the debt ceiling, the odds are very high that the stock market will rally. Whenever the stock market rises rapidly, so do interest rates. This happens every single time for this simple fact that investors take their money out of government securities and invest it in the stock market to ride the rally.

The removal of money from government securities by investors causes the bond yields to rise which in turn means higher mortgage rates.

The bottom line is that there is a good chance that mortgage rates will rise regardless of what happens next week.

I encourage you to use this information to apply for your purchase mortgages. I also recommend that you lock in your rates because one thing is for sure..rates will either likely rise, or a slim chance they will remain the same, but I can guarantee they will not decline.

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Roberts Johnson and Rachel Diedrich

         

Roberts Johnson, Roberts (Bobby) Johnson and Rachel Diedrich

2314 Curtis Street, Denver CO 80205 Bobby Cell: (303) 525-7599

Visit http://www.cooldenverhomes.com