Will home loan interest rates go down again?
Good question! I'm glad you asked. I decided to confide in my mortgage expert, Mariah Trujillo with Legacy Mortgage, on this question because I hear it quite often lately. The short answer, most likely not.
Why not? Another good question. Even though the rates did tick down a little the past two weeks, experts like Mariah feel that rates will not go low or even stay at the current rate (which is 4.25% as of 1/14). The main reason the rates down just a bit was because the job rate was much lower than what most economists predicted, 74,000... Not good. BUT, supposedly the economy is on an up swing, which is good for the economy but not good for interest rates.
I have been hearing that we have hit bottom for quite some time. Since I have heard this for a while it must mean that have been "skipping" along the bottom. Many say our economy is ready to recover. If this is true, then rates will follow. As the economy moves upward, so will interest rates. In addition to the economy causing rates to rise, Freddie Mac and Fannie Mae's service fees will increase as well. These fees will be passed along in buyer's interest rates. This should increase rates by .25% These fees are certain to happen within the next few months or even weeks.
So, rates will rise. We have been spoiled by great rates for quite some time now but, to me, anything below 6-7% is great! If you are thinking about buying a home and are qualified at a certain amount, strike now while the iron is hot! If you don't, the amount you have been qualified for will slowly dwindle. Now is a good time to buy if you can afford it!