While it is never possible for anyone to predict with any certainty whether mortgage rates will go up or down, there is little question that rates are at or near historical lows.
With the Fed funds rate near zero, banks are able to maintain healthy profit margins and still offer very compelling mortgage rates. And with the economy still quite weak and the government needing to maintain economic stimulus through low interest rates, it is hard believe that rates will be going signifcantly higher over the short term.
That being said, however, it appears to this writer that there is little chance for a substantial drop in mortgage rates, and that over the long term, rates are likely to move higher. Coupled with the lowest housing prices in over a decade, available low interest rates provide a rare opportunity for those looking to buy a home to do so at a cost that will, in most cases, be less than renting an equivalent home. All in all, this is the perfect time to buy a home.
Tags: Federal Reserve
