Low Rates Won’t Last Forever!

Mortgage rates are currently at historically low levels. We are now enjoying the lowest mortgage rates since they began recording them in the early 1970’s.

Experts are starting to warn that these rates won’t be around forever…if you want to make sure to take advantage of these low rates, now is the time to act!

This week at the Fed Meeting, they discussed the current economic situation and concluded that inflation remains tame, the slowing of the economy seems to be lessening, and the bright spot was consumer spending increased a bit as did consumer sentiment. This may indicate that consumers are starting to feel better about the economy, which may signal the start of a turning point in our economy. When we start seeing economic recovery, interest rates will start to increase.

Another factor that has been keeping interest rates low is the Fed purchasing of mortgage-backed securities, which they began in January. The Fed has now purchased $400 billion in
mortgage-backed securities to date. This has been an action directed at keeping mortgage rates low to help stimulate housing and refinance transactions. However, when the Fed backs out of purchasing mortgage-backed securities the result will likely be higher interest rates.

As Wayne Gretzky once said, “You will always miss 100% of the shots you don’t take.” Today is a great time to secure a historically low interest rate!

~ Courtesy of Wendy Charles, LoanCentral LLC, 425.468.9321, WendyC@LoanCentral.com