Timing the Home Mortgage Market

The best advice you can get when it comes to the home mortgage market is, "Don't believe the hype." Pundits from coast to coast are predicting that we've either emerged from the housing slump, or we've only just begun to slide into a deeper hole. Deciding which party to believe is a nearly impossible task for the typical consumer, who has neither the time nor the financial background of some of these "experts." Here are a few nuggets of golden advice for the beleaguered consumer: Don't believe what you read (or hear) Cynical as the argument may be, there are journalists who want to sell newspapers more than they want to impart sound financial wisdom. They make sensational statements to attract readers. Even if they're not out to grab headlines, there are so many variables at play in the marketplace that the natural result is differing opinions among the pundits. The obvious by-product is distrust on the part of the consumer. Recent studies indicate that nearly 50 percent of homeowners said that the media doesn't have much influence in their home-buying decisions. Believe in yourself For most consumers, the ultimate guiding force behind any decision-making is their personal financial situation. A borrower may look to the media for reinforcement of his decision, but studies indicate that most people make their choices based on the current rate environment and their own finances. The most astute move a consumer can make is to assess his or her own personal situation when looking for mortgage rates and deals. It doesn't hurt to read the papers and glean as much knowledge as possible from the industry experts. But take it all with a grain of salt. When it comes to refinancing and buying or selling your home, believe your head, and avoid the hype. Then, like the story of Chicken Little, your mortgage experience can have a happy ending.