Interest rates are near historic lows. I remember when mortgage interest rates were in the high teens and you were very lucky to get a 12% rate. That was before I was in the business but I do remember hearing my parents talk about it as a young child.

The other thing that I remember from my child hood is that houses were selling! Sure you'd see the occasional real estate sign indicating that a home is for sell but there were way less of them and they did not stay up for very long!

The economy was doing fairly well at the time as Regan's terms was coming to an end and America was the bread basket of the world!

Of course I was young during those times... I am nearly 30 years old now and things have changed a whole lot. I am questioned every single day about interest rates. I am sometimes told as rates begin to creep up that the interest rate is high. Interest rates are one portion of the transaction that until we lock a rate in I have zero control over but I do know how to watch the market and I can make recommendations based on what the market is doing.

The thing about interest rates is that they are only really significant with regard to individual economic well being when the individual is considering a refinance. It would not make any sense to refinance into a higher interest rate mortgage than you are currently in.

People will still buy when rates get higher... As a matter of fact they will buy a lot.

Unemployment numbers affect the bond market. Usually a very high percentage of unemployment signals to a weakened economy. When the economy is weak the stock market declines and investors seek shelter under the umbrella of the bond market.

When the bond markets are doing well mortgage interest rates are low and the better the bond market does the lower interest rates go. Since high unemployment figures are a good thing for the bond markets and interest rate pricing the more unemployed people that we have in this nation the better our interest rates will be typically.

From this perspective you can see why as a mortgage professional I am not opting for lower rates. I love being able to give people rates that they are happy with as customer satisfaction is my number one goal! However, what good is a very low interest rate if the average american cannot afford it?

Our ecomony is in trouble! We have a very high unemployment rate, the housing market is slumping, and consumer spending that makes up 2/3rds of the economy has slowed to a standstill. Eve those people who are employed are feeling the pain including myself.

We are all hurting because our dollar is not worth what it was 6 months ago! Low interest rates don't matter when people can't afford to fill their gas tanks.