Interest Rates Still Low for New Home Buyers
Real estate professionals have expressed concerns as to the state of the interest rate in today’s housing market because there are rumors that the interest rate is about to be raised by the Federal Reserve (The Fed). Because of these fears, many homeowners have hurried up to refinance their homes with these historically low interest rates while home buyers have been “coming off the fence” more rapidly than normal to buy a new home. These worries can be set aside for now as The Fed has decided not to raise interest rates during their last meeting citing a weak global economy, low inflation, and unstable financial markets.
However, there are some aspects to consider when deciding whether or not to buy a new home as soon as possible
before interest rates “go back up.” The first point is that even if interest rates do go up, they are not forecast to go up by much upon raising. The increase in the interest rate will STILL be lower than any record of interest rate lows in the past. This means that you will still be able to maximize the amount of money you use to buy your new home with lower interest rates.
The second aspect to consider is that the increase in the interest rate means that the U.S. economy and job market are getting better which means more and better jobs for home buyers interested in buying a home. Waiting until you have the right job and the financial ability to buy a home is a better choice than “squeaking by” to be able to buy a home at a lower interest rate with no stability in your financial future.
Finally, when The Fed does raise interest rates, this is good for investors and employees with retirement accounts because interest rates for these types of savings and money making accounts go up as The Fed raises the interest rate.
Even though The Fed’s decision is to not raise interest rates at this time, interest rates are expected to go up as soon as the end of 2015. Whether they go up or not, now is the time to take advantage of the incredible financing offers to buy your home while interest rates are low, credit restrictions are easing, and down payment assistance has once more been established by the Department of Housing and Urban Development.
