Mortgage rates have dropped again, and analysts are hoping to see a rise in home buying. However, the drop from 5.08 percent to 5.07 percent may not be sizeable enough to prompt much activity. At least not in this economy.
Naturally, America wonders if a revival of the housing market will bring a return of the financial meltdown that began with subprime lending.
Hopefully, banks will bypass the short-term gains they can make out of high-risk home loans.
But consumers also need to be part of the solution. Even if mortgage officers in banks are ready to approve risky loans, buyers will still need to practice moderation. The instability of our economy will not disappear soon. Buyers should scale back expectations for their next house instead of gambling on long-term, unrealistic earnings.
The quote “Don’t count your chickens before they are hatched,” might be appropriate here, except Franklin didn’t say it—Aesop did.
Franklin’s comment is more pertinent to homebuyers, as he advises them not to let the possibilities of earnings obscure the realities of daily costs.
“Gain may be temporary and uncertain; but ever while you live, expense is constant and certain: and it is easier to build two chimneys than to keep one in fuel.”