Mortgage interest rates have been low since the crash of 2008, but will they remain that way? With the economy in a very strong position, these interest rates are at a danger of rising before the end of the year. How long will mortgage rates be low? Time could be running out.
When the housing market collapsed in 2008 many homeowners lost their homes or ended up far underwater on their loans. This prompted the government to lower interest rates and offer programs like HARP (the Home Affordable Refinance Program) to struggling homeowners to try to keep them in their homes.
This helped to reinvigorate the market and dig the economy out of the hole that had been created and saved the homes of thousands of families.
However, with the economy recovered, the Federal Reserve is poised to raise interest rates. While there have been threatened raises this year, and the Fed did raise rates by a quarter percentage point to a range of 1.75 percent to 2 percent back in June, large raises have not happened yet.
When rates rise, those of you who have a fixed-rate mortgage or a mortgage lock can rest easily, but people looking to buy a home or refinance, or people with ARMs or HELOCs can get caught up in rate hikes that raise rates.
If you are on the fence about refinancing or buying a home, you need to get on it quickly, before the Fed raises prices and you get left out in the cold.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, Nashville at (615) 810-8555 or Birmingham, AL at (205)721-7656. You can always apply online at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?