How long will the Fed keep interest rates suppressed? This isn’t a political comment. It is widely known that Janet Yellen, and her predecessor Ben Bernanke, have kept interest rates artificially buried. There are reasons for this and theories about how long it will continue.
But without getting into the matrix of Fed watching and prediction, the bottom line for our investors and home buyers is this: mortgage rates remain at rock bottom levels.
Freddie Mac, the government-backed home finance giant reported last week that the average rate for a 30-year fixed home loan was 4.1%. This is the lowest rate for 2014. Fifteen year fixed rates were reported and 3.24% and hybrid adjustable loans with a fixed rate for the first five years came in at 2.97%.
We cannot predict when rates will move up. What we can say is, that sooner or later, they will.
The point being that if you are thinking of a home purchase or the acquisition of an income generating investment property, there could not be a better time to buy than now.
Could rates tick down another tenth? Anything is possible. But once rates start climbing, we feel they will move quickly.
If you would like to get an idea of what your payments might be for a home purchase or the acquisition of an investment property, give us a call at the number below. We will be happy provide you with the information you need. We can also let you know what properties are available at payments you can afford.
I look forward to hearing from you about your real estate needs