I used to work in the City as a trader and investment analyst and investor psychology always fascinated me. Why do the masses usually buy near the top of markets and sell near bottoms, despite being able to cite the mantra “buy low, sell high”? It’s the same reason investors hold on too long and won’t take a profit, or refuse to cut losses because they are hoping for a bounce. It’s a fact, the markets chew up and spit out Mr Average Indisciplined with regular effect.

It seems to me that the same psychology can be found in the mortgage markets. Clients have very short memories. Interest rates are still around the lowest they’ve been for half a century and you’d think clients should be grabbing them with both hands, beating a furious path to the nearest mortgage broker. They hung on and on, more concerned to miss the bottom of the rate cycle than to secure an excellent long term rate. Now that they are creeping up (like all of 1/4%!) they are talking about them being expensive.

Unlike the markets, however, there may be a second bite at this particular cherry. Long-term fixed rates have dropped back to historically low levels, and some experts think them a bargain, writes Faith Dewey Read full article.

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