Interest rates are beginning their assent. One benefit of the recession has been low interest rates for the 30-year fixed rate mortgage. In fact, we have had historically low rates not seen in 30 years, so for home buyers who have wanted to buy a home, this has presented a rare opportunity to get the lowest monthly mortgage payments possible in three decades.
Interest rates on U.S. 30-year fixed-rate mortgages, the most widely used loan, averaged 5.14 percent for the week ended Dec. 31, the highest since the week ending Aug. 27 and up from the previous week’s 5.05 percent, according to a survey released by Freddie Mac, the second-largest U.S. mortgage finance company.
My argument recently for home buyers is that they should buy in these winter months if they have been intending to buy a home in Sequim or Port Angeles this coming spring or summer, because they have more negotiating power with sellers right now when there are fewer buyers. Wait until spring and as a buyer you will be competing against a lot of other buyers.
But if you wait until spring or summer, how much higher will your monthly mortgage payment be with interest rates on the rise? Interest rates are beginning a long slow assent. If you look at the bigger picture of what is happening in the economy, what the federal reserve is doing to stimulate the economy, and what the Obama administration is doing with respect to fiscal policy, interest rates have nowhere to go but up.
Last Updated on July 27, 2012 by Chuck Marunde