You may have recently heard that the Federal Reserve has plans to raise interest rates; however, at this point in time, there’s no definite time frame for the shift. The decision, which is expected to be announced later this year—experts are suggesting the possibility of mid-September—is the result of a healthier economy that no longer needs the buffer that interest rates close to zero have provided over the last 9 years.
In essence, returning rates to historically “normal” levels will not only help keep future inflation from rising too quickly, but will also ensure the vitality of the lending market.
While this type of rate increase often leads to a bit of temporary instability in the market, which can lead to negative issues such as slowed economic recovery and stagnant employee wages, it can also signal higher returns for consumers who consistently save their money.
Still, if you are someone who is looking to borrow the necessary funds for a new home, you’re bound to find yourself in a tight spot if you fail to lock in today’s low rates. At this point in time, an average 30-year mortgage carries a 3.8% interest rate, which is down from 4.3% about a year ago, so experts suggest that if you’re thinking of buying a home, now is the time to push for loan approval.
If you’re on the hunt for a new home or are simply looking for a competent mortgage professional, I’d be happy to provide referrals and offer guidance along the way. Please feel free to contact me at your earliest convenience.
Marie Dinsmore | The Dinsmore Team | www.DinsmoreTeam.com | 770-712-7789