Thursday, November 7, 2013 - Article by: Prospect Financial Group, Inc. -
When interest rates began to rise this summer, many hopeful home buyers had to put their home search on hold. Now, thanks to Federal Reserve Chairman Ben Bernanke, shoppers are getting a second chance.
After months of speculation of whether or not the Fed would cut their current stimulus program, the U.S. central bank pledged a continuation of the bond-buying program responsible for last year's all-time low interest rates.
May's scare that tapering would end caused rates to rise to two-year highs and caused pending home sales to fall by 9%.
While rates will likely never get as low as they were last year, they are expected to hover around 4% (4% APR) for a 30-year fixed-rate loan through early next year.
The Fed is expected to delay tapering of their current bond-buying program until March, according to Bloomberg. As long as the economy keeps making steady improvements, the Fed will start cutting back on their stimulus program. Once tapering begins, mortgage rates will undoubtedly rise.
Secure a Purchase Loan in 15 Business DaysIf you are in the market for a home purchase (primary residence, second home or investment property), the rates on our home purchase loans are unbelievable and our purchase transactions are being done in less than 15 business days!
Call us at (858) 605-0952 to find the perfect home purchase loan for you!
Didn't find the answer you wanted? Ask one of your own.