Nevada City Virtual Tour

Friday, September 20, 2013

Better lock in your mortgage rate. Now!

Better lock in your mortgage rate. Now!

 

Real estate stocks rallied, and mortgage rates fell, as fears of Fed "tapering," at least in the short term, evaporated.

The Federal Reserve will continue to buy U.S. Treasury securities and agency mortgage-backed securities, both of which have kept mortgage rates well below historical norms for the past few years. Fed governors cited the recent rise in mortgage rates in their list of concerns that kept them from pulling out of asset purchases.

Let's see...a 5% mortgage interest rate or rental costs increasing by 15-20% per year? If you do not buy a house soon, better sign a long-term lease because those same homeowner/property managers that you are renting from are feeling the pinch in interest rates and maintenance costs and will soon increase rental rates!

 

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