| Wenzel Select Properties Newsletter-Vol 4 Issue 2 |
September 2011 |
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Low Mortgage Rates Predicted Through Mid-2013
Photo: © iStockphoto
 As of Tuesday, August 9, the Federal Reserve has decided that the current economic climate justifies keeping the federal funds rate at nearly zero through mid-2013. What does this unusually transparent statement mean for prospective homebuyers?
The Fed's prognosis means that homebuyers who qualify for a loan can lock in rock-bottom interest rates today. Those with less-than-stellar credit can look forward to taking advantage of the exceptionally low rates when they've built up their credit.
However, it would be unwise for consumers to adjust their long-term fiscal goals solely because of the anticipated low rates over the next two years. For those who are ready to buy a home or refinance, the low rates just sweeten the deal, but the Fed's statement should not sway you into making major financial decisions if the time is not right for you.
The bottom line for homebuyers and those who are considering refinancing: keep your long-term financial goals in sight. Low mortgage rates should play a role in your financial planning, but not necessarily take center stage.
On the other hand, mortgage rates have already plummeted, as Freddie Mac's Primary Mortgage Market Survey® reveals. The 30-year fixed has hit a new low for 2011, while the 15-year fixed and 5-year ARM set record lows, averaging 3.54 percent and 3.18 percent. If you intend to buy a home in the near future, now is a great time. |
Managing Broker: Lisa Wenzel - 630 430-4797
Broker: Julie Thresh - 630 632-6635
Broker: Christine Leonchik - 312 303-0094
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Broker: Freddy Wenzel - 630 430-4790
Broker: Danny Reed - 708 703-4653
Broker: Melissa Nelson – 630 392-5171 |
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