The big questions right now are, “What is happening with mortgage rates right now?” and “Should I be worried?”
Mortgage loan interest rates have been increasing at a historically unprecedented pace in the past 90 days!
That means faster than they EVER have in history!! This is in a big part due to the Federal Reserve saying they will begin “easing off” their bond buying binge they have been doing for the past 5 years with Quantitative Easing, better known as QE1, 2 and 3!
Bond traders are now seeing demand for bonds will likely fall, which has increased yields on rates in anticipation of this move, which raised interest rates on mortgages.
If you are contemplating either buying or refinancing a house, remember the old saying, “Hindsight is 20-20”.
Jump off the fence and get into the housing market now; because if you decide to “wait for the rates to come back down” you will probably be kicking yourself next year when rates will likely be back to normal, which is historically around 6% or more.
We would love to hear your thoughts on this. Do you think mortgage rates will continue to climb? Why or why not? Leave your comments below. Thanks!