How long will mortgage rates remain at their current low levels?
Good Monday Morning!
The question that I am getting from almost everyone is, "How long will mortgage rates remain at their current low levels?" My answer is always the same. "Nobody knows for sure!" Here is some insight though into what may be ahead. Right now the government is purchasing around $80 billion dollars per month in bonds. This rate of purchase is what is needed for the continuation of the current low interest rates. My thought is that rates are going to be somewhat volatile until the Fed meets on June 19. With unemployment rising slightly there may not be any reduction of the bond purchase rate by the Feds when they meet. If the Feds decide to reduce the bond purchase rate, then rates will jump as a result. Long term, my thoughts are that most of the fluctuation is going to be minor for the next quarter or two as long as the economy remains flat. A surge in employment could be the trigger for reducing bond purchase and the creation of higher mortgage interest rates. My suggestion as always is that you know what you have today and it may not be here tomorrow. If you want to take advatage of the low interest rates then don't delay. If you are thinking about a home purchase or a refinance the best advice I can give you is do it now!!
Have An Awesome Week!
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AND HERE'S YOUR MONDAY MORNING COFFEE!!
Sincerely,
Galand
