Average long-term U.S. mortgage rates declined following the Federal Reserve's decision to keep interest rates at record lows. For now at least! A majority of Fed officials on the committee that sets the federal funds rate still foresee higher rates before next year. The Fed will meet in October and then December. A rate hike by the Fed could bring higher rates for home loans.
As interest rates rise buyers lose buying power. This means a buyer's monthly payment will be more for a $500K house purchased when rates are at 4.5% rather than now when rates are at 3.86%. If you are considering a home purchase, now is the time to call an agent at CLAY STAPP+CO and let us help you find the home of your dreams.
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