We keep hearing that rates are at an all time low and that it is inexpensive to borrow money right now! The KCM Blog just wrote an interesting article entitled Where Are Interest Rates Really Headed? talking about what we can expect to see happen with interest rates over the next couple years.
The article states that interest rates were expected to sky rocket earlier this year when the Fed backed out of purchasing mortgage backed securities. These projections were wrong, however. The Mortgage Brokers’ Association (MBA) recently made a new projection: Mortgage rates may be as low as they’ll get — rates are on course to rise, slowly moving toward 5% by the end of next year, according to the Mortgage Bankers Association’s economic forecast.”
The National Association of Realtors (NAR) also believes interest rates will start to go up again. This graph shows the comparable projections of both the NAR & MBA.
Click on the link to read the entire article.
Bottom line: Now is a great time to buy! If the value of properties decline but interest rates increase, it will be more expensive to purchase a property in the future.
Click on the link to contact a fabulous local Tahoe City Mortgage Broker!