Well, I got news for ya... it ain't gonna happen any time soon. In fact home mortgage interest rates will soon be on the rise. By spring time, experts expect rates to be above 6%. Those are still very good rates, historically speaking, yet not quite as favorable as rates are currently (in the 5's). Why is this... do you ask? Well, there are a number of factors involved. The main issue today is the federal reserve.
The Fed has been buying lots and lots of mortgage backed securities lately to help pull this economy and housing market out of the gutter. Well... it's been working! The down side to that is there will be a point of diminishing returns. Eventually, the Fed has to stop buying all those mortgage backed securities. When that happens, and it will soon, mortgage rates will rise to the 6's at least. They are trying their best to make this a gradual rise, but if you or someone you know is waiting to buy until interest rates are down, wait no longer. You first time buyers, especially, have about three weeks to get a new home under contract. Call, text, email, fax the Beers Team with further questions about this or anything else involving real estate. We feel that educating our clients is our number one priority!
Oh By the way... I'm never too busy for any of your referrals!
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