In today’s market, many people are leery of the rising interest rates and discouraged to buy a home. Some are even deferring the home buying process in hopes that the interest rates will lower.
What they don’t realize is that interest rates are still historically low. For years the average interest rate on a 30-year-mortgages never went below 6.0, until January 2009. The unusual low interest levels came as a direct result of U.S. Federal Reserves vigorous acquisition of bonds– in an attempt to boost the economy.
But as the economy improves, the Federal Reserves buying spree will end– I suspect within the next 2-3 years. This will effect the mortgage rates, spiking them to high levels we haven’t seen since 2009.
My advice, if your looking to move, now is a great time to buy, because rates continue to be very reasonable!
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