19 Mar
Is now the time to buy a new home - Are mortgage rates going up or down
Posted in Business on 19.03.11
It is often difficult to determine when to buy a new home. Are current mortgage interest rates going to continue to rise or will they fall? Should you wait to buy or should you buy now?
Trends reveal that home mortgage interest rates are going to rise soon. Many people have been waiting for rates to fall because they are hoping to be able to refinance their mortgage rates. Unfortunately, many financial experts believe the rates to rise until they are over 6%. For the last thirty years, the downtrend has been working to the current level.
Some experts are afraid that double digits may even be possible for some homebuyers that wait. With the recession on everyone's mind, it would seem that the rates should go down as there is an abundance of properties on the market and people can afford to shop around for the best prices. While this is true, it will be much harder for rates to continue to drop and interest rates should climb as the market bottoms out.
Many investors are buying up the properties in hopes that when the market turns (and it always does), they will be able to profit from the increase in sales. The US Government continues to devalue the US dollar and it floats more debt to deal with the financial crisis. The Federal Reserve is buying up many of the mortgages that are failing with the hopes of stopping the losses. If the dollar continues to be devalued, inflation will be impacted and interest rates will once again rise, perhaps very quickly.
Consult a financial advisor before you make any decision that will affect you for such a long period. However, the mortgage interest rates should continue to rise and home buyers may wish to buy now while they can take advantage of the lower rates.
About the Author:
Zandar Smith
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Vincekingston
Lowest Mortgage Rates are market driven and all financial institutions bow to this force.