Bohemia, NY (PRWEB) September 10, 2013
Financing expert Alec Sohmer discusses an article published by Fox Business on August 30th, which details the declining mortgage rates due to the ailing economy and mounting tensions in Syria.
According to an article published by Fox Business on August 30th titled “Mortgage Rates Stumble in Feeble Economy,” Bankrate.com’s latest lender survey found that the benchmark 30-year fixed-rate mortgage fell to 4.62 percent from 4.74 percent, a 0.12 percent decline since last week. The benchmark 15-year fixed-rate mortgage also fell this week to 3.66 percent.
The decrease is no doubt related to concerns in Syria and less-than-favorable news about the economy, the article says. While the economy has been on a steady incline since the recession, the article says recent economic statistics have discouraged many investors, resulting in a higher demand for safe investments like mortgage bonds.
Alec Sohmer, a financing specialist and managing director at Plymouth Rock Capital, says interest rates tend to drop when the country is involved in potentially hostile foreign disputes, like the situation in Syria. “Bad news relating to the economy or foreign affairs tend to prompt investors to secure their assets by investing in safe Treasury or mortgage bonds,” he says. “Investors pull out of the market because of an overwhelming uncertainty and look for smarter, more secure investments. Due to the increase in those types of investments, many lenders decrease their mortgage rates.”
However, Sohmer says decreasing mortgage rates isn’t necessarily a bad thing. With the declining rates, Sohmer says homeowners have the opportunity to seize prime real estate. “As with any loan, lower interest rates propose a better opportunity for people to buy,” he says. “Lower interest rates could spark an increase in real estate sales. If you’re looking to take out a mortgage, you should do so while the rates are on a decline.”
Alec Sohmer, a strategic business and financing leader at Plymouth Rock Capital, has 20 years of Board-level experience. He has served in many interim management positions for businesses requiring significant turnaround or restructuring. He is able to increase revenue streams by utilizing a variety of line management techniques. In his two decades of experience, he has dramatically increased revenues of businesses by identifying untapped markets.