Refinance Your Mortgage in June

Wow, what a great week for people who have a home mortgage with the 10 year interest rate dropping by 0.28% If you have a mortgage you need to refinance it during June. If you think this makes sense, please forward this e-mail to others. First is the info from Vanguard. At the end are some memorable golf quotes.






Vanguard



The U.S. recovery has slowed more sharply than first thought. The spring job market has been much weaker than expected, and new figures indicate that economic growth earlier this year slowed more than originally reported. Financial markets slumped, and U.S. Treasury yields sank to record lows. For the week ended June 1, the S&P 500 Index fell 3% to 1,278 (for a year-to-date total return—including price change plus dividends—of about 2.6%). The yield on the 10-year U.S. Treasury note fell 28 basis points to 1.47% (for a year-to-date decline of 42 basis points).





Refinance Your Mortgage in June



This week the 10 year US Treasury bond interest rate reached an all time record low for our country at 1.47%. To put this in perspective, as long as 10 year US Treasury bonds have existed in our country the interest rate has never been this low. It is lower now than during the Great Depression of the 1930's, the Great Recession during the 2000's, World War I & II, etc.



Does it make sense that this rate should be this low when looking at other economic data? The economy grew by 1.9% during Q1 of 2012. The current inflation rate is a little bit above 2%. So it does not make sense that this interest rate is lower than economic growth and the rate of inflation.



The reason interest rates are this low is because of the Federal Reserve Operation Twist and international investors buying US Treasury bonds. Operation Twist stops at the end of June which means that the Federal Reserve will stop making these bond purchases. It does not make sense that the Federal Reserve would need to continue to lower interest rates. International investors have driven down bond rates at historically low records in the US, Germany, and Great Britian as they sell bonds in other European Union countries.



Given the actions in the European Union, it makes sense that interest rates will continue to drop in the near term. It would be a great surprise to see the 10 year US Treasury bond go below 1.0% since the 10 year rates in Germany and Great Britian are about 1.2%.



So what is the plan? For the next week or so, research where you can get the best deal and negotiate, negotiate, negotiate. During the middle to the end of June it would be a great time to seal the deal. A good target for a 15 year mortgage is 2.5%. It is a wonderful thing to lock in an interest rate for 15 years that is below the inflation rate.





MEMORABLE GOLF QUOTES –



"I have a tip that can take five strokes off anyone's golf game: it's called an eraser." – Arnold Palmer



"You can't go into a shop and buy a good game of golf." – Sam Snead



"Golf is a game that is played on a 5 inch course - the distance between your ears. " – Bobby Jones



"If you are caught on a golf course during a storm and are afraid of lightening, hold up a one iron. Not even God can hit a one iron." – Lee Trevino



"If you think it's hard to meet new people, try picking up the wrong golf ball." – Jack Lemmon



"I know I am getting better at golf because I'm hitting fewer spectators." – Gerald Ford



"The only time my prayers are never answered is on the golf course." – Billy Graham



"Golf appeals to the idiot in us and the child. Just how childlike golf players become is proven by their frequent inability to count past five. " - John Updike



"Golf is so popular simply because it is the best game in the world at which to be bad." - A.A. Milne



"Golf is like a love affair. If you don't take it seriously, it's no fun; if you do take it seriously, it breaks your heart. " - Arthur Daley



"Forget your opponents; always play against par." - Sam Snead



"I guess there is nothing that will get your mind off everything like golf. I have never been depressed enough to take up the game, but they say you get so sore at yourself you forget to hate your enemies." - Will Rogers



"The reason the pro tells you to keep your head down is so you can't see him laughing." - Phyllis Diller



"If you drink, don't drive. Don't even putt." - Dean Martin



"If I can hit a curveball, why can't I hit a ball that is standing still on a course?" - Larry Nelson



"They call it golf because all of the other four-letter words were taken." - Raymond Floyd