Mortgage rates are higher, a lot higher than the beginning of this year. The question is, will they go lower? All signs point to “no.”

We are seeing the correction most of us expected but could not predict when. Today’s job numbers were far better than predicted. New jobs, 467,000 versus the predicted 150,000 were a surprise. November and December numbers were revised upwards by 709,000. This means pressure on wages, up 5.7%, FOR THE YEAR!

What does this mean for you? Any borrowed money tied to short term rates (home equity line of credit and credit card balances) will see higher rates right away. A new loan for an automobile or an installment debt from a big box store will certainly have higher rates going forward. Even with higher mortgage rates it may make sense to consider looking over all of your debt to see if there is a better strategy available to you.

Another factor, right now home equity is as strong as it has ever been. There is a good chance you have enough equity to revise your credit utilization to a tax-deductible mortgage loan and still receive the most favorable terms on a fixed rate loan.

Some advantages could be:

• Significantly lower your monthly payment
• Eliminate Mortgage Insurance
• Convert home equity to cash for whatever purpose you desire
• Consolidate debt
• Buy a second home someplace warm, or someplace mountainous and cold if you ski

Rates have moved up. But rates are still low and a few months from now you may wish you had not waited.

To be clear, I always advise my clients to keep long term goals in mind. Free and clear home ownership in retirement is a goal for many. I can help with that.

You can email me a craig@craiggoebbel.com or if you want to move faster (rates are moving higher click on my picture on the right, it takes you to my secure, online application.