If you are like most of today's potential home-buyers, not only are you on the lookout for the perfect home, but also for the perfect rate. Surrounding you are advertisements for rates you wouldn't have dreamed of a few years ago, but how long are these low rates here to stay? A little research will show you that forecasters are predicting that the trend will be an upward one. The following graph reflects the trends we saw in rate movement for 2009:
As you can see, the end of 2009 has us in an up-swing. I had the opportunity to sit in on a lecture given earlier this month by Dr. Lawrence Yun, Chief Economist for the National Association of Realtors. His prediction was that interest rates could very well rise between 6 and 6.500% by the end of 2010.
Of course, this is just one prediction amongst many, but also a prediction heavily weighed on the facts we do see before us at present time. The Fed is gearing up to gear down their assistance with keeping rates low but ending their purchase of mortgage-backed securities. The hope is that the market is strong enough to sustain itself without this specific assistance.
The bright side is that that even if we hit 6.500%, this is still lower than the rates we had available to us just a few short years ago. Low rates now coupled with great home prices and tax incentives make this a true buyer's market and a great time to consider your own home purchase!
Specializing in FHA, VA, Conventional and Jumbo Mortgage Financing