Weather and Mortgage Interest RatesHello all, I subscribe to a service that keeps me up to date with the latest market updates and economic events. I found it interesting that in one of the articles it talked about weather and how it affects interest rates and home sales.. Here is a quick overview of the article.

The mortgage interest rate markets are subject to an enormous number of factors. Most analysts agree that weather can have an effect on market activity. Although the effects are seldom long lasting, the effects of weather on monthly data can be quite significant.

Relatively mild weather across the United States so far this winter has helped to alleviate some of the energy demand concerns analysts had. However, the fear remains that energy prices could skyrocket if temperatures fall below average and the demand for energy increases.

The economic effects of various weather occurrences may cause only a temporary change in economic activity. However, those times of change can have a lasting impact on people obtaining mortgages. Despite the slight rate increases seen recently, mortgage interest rates remain historically favorable for borrowers. Now is a great time to take advantage of rates at these levels.

 

Here’s some news that should warm your heart: For the first time since the winter of 2001-02, prices for residential heating fuel (petroleum products and natural gas) are projected to be either near or lower than last year for most Americans this winter. What’s more, the National Oceanic and Atmospheric Administration is forecasting that most of the country will see inter temperatures above normal.

That’s great news indeed. But plan to take further advantage of these favorable conditions by following a few simple steps to keep your home snuggly warm while still reducing energy use:

  • Break out the caulk. Consider the startling fact: The gaps around the windows and doors in most houses let out the same amount of air as a 3 by 3 foot hole in the wall would! The good news is that just a few dollars worth of caulk and weather stripping can make a huge difference.
  • Shore up the windows. Equally startling is the heat lost through older, inefficient windows. Simply adding storm panels make windows 50 percent more energy efficient, and installing new double pane windows is even more efficient. The downside is that you could very well spend several thousand dollars up front to replace them. The good news is that the federal government and many states and cities provide tax rebates to help defray the cost. Visit Energy Star for more details.
  • Watch your chimney carefully. Chimneys, by their very nature, are designed to create a draft. So be sure you keep the damper closed when your fireplace is not in use. Also consider converting to a more efficient fireplace, or switching to a wood-burning or pellet stove.

All and all we’re here to help guide you to a happy home. Whether it’s opening your eyes to new mortgage products, quick tips around the home, watching the economy and the markets we’re here to keep you in the skinny on mortgages and a better life.

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