LIME REALTY GROUP has been talking about the mortgage rate for awhile now. We’ve kept you posted and as you may or may not be aware, analysts continue to predict the interest rate to increase. But why hasn’t it?
A huge answer to that question showed up yesterday when the Fed declined yet again to raise the interest. Even with a 5% unemployment rate and new jobs being created, they decided against making a move.
Now let’s be honest here… Everyone expected Janet Yellen to start raising the rate after she took over as Fed Chair. But so far, she hasn’t.
This time around, Yellen cited the economic instability of the international community for holding the rate down. The Fed believes problems in China and European Union can be weathered more comfortably in the US if we stay in recovery mode.
So many of you are now asking… What does this mean for me and buying a home? The answer is, you can expect the mortgage rate to continue to hold right around the 4% point. It may drop a little right now in light of the announcement, but it will quickly get back to 4% mark. This may not sound like big news, but considering how huge the rates were before the recession, we’re living in a mortgage paradise!
Although it looks like the Fed will maintain this holding pattern for awhile, there’s always the chance they’ll raise the interest rate. For the immediate future, things are looking good. Chances are, they’ll stay this way for awhile. So the urgency behind getting a good deal might not be as pressing as some will have you believe, but this party won’t last forever. If you have some credit cleaning to do or some money to save for a down payment, now’s the time to work on it. Get your ducks in a row and then call Lime. We’re always happy to guide you through the process of preparing to buy a home.