April 4th, 2014
A few years back, short term interest rates were lowered to keep mortgage rates low and stimulate the economy. Later the Fed also instituted an unprecedented bond-purchasing program to keep the mortgage markets healthy (AKA, QE-2).
Now, with the economy slowly improving, the Fed recently stated its intent to end QE-2 and as a consequence we have seen the markets react and are slowly seeing mortgage rates move higher, this time taking them past any of the recent short term cyclical highs. The general consensus is that rates will rise about one percentage point during the next 12 months.
As homeowners realize the potential increase in mortgage payment and those contemplating purchasing a home come to understand the reduction in buying power this will cause they should be very motivated to lock in their fixed rate mortgages soon. For example, if 30 year fixed rates jump just 1 percentage point, from 4% to 5% that is a whopping 20% increase!
There are lots of lender sites that make it easier than ever to quickly compare multiple mortgage rates and get the best possible.
For more information on Meridian homes for sale and excellent local lenders visit our website.
Happy House Hunting!
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Realtor’s at Stewart Realty, LLC, Meridian, Idaho - Toll Free: 866-787-5445
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