Low Mortgage Rates: For a Limited Time Only
Mortgage rates have been at historic lows for years, but time is running out before they creep up again. In fact, some economists have indicated that an uptick is already under way.
Why are the rates going up, and what made them so low in the first place?
The Great Recession of 2008 called for drastic measures, and the Fed responded by rolling out bottom-of-the-barrel interest rates to encourage financing, spending, and investment. It worked. With affordable interest rates, consumers acquired assets in the form of housing, increased their wealth, and gained confidence as consumers. Within a couple of years, the economy began its climb to recovery.
However, now that the recession is behind us, the Fed must respond in kind. To combat the effects of inflation, they must raise mortgage rates for balance. Signs are clearly pointing to more economic changes ahead. In fact, rates for a 30-year fixed mortgage rose a few basis points as recently as this month (October 2016.)
Strike While the Mortage Rates are Hot
If you’ve been thinking about buying a house in the Houston area, now–and yes, right now–is the time to do it. A lower mortgage rate will save you thousands of dollars over the years, providing financial stability for you and your family. But when the rates go up, there may be no turning back the clock.A lower interest rate could make a huge difference in your monthly payment – by as much as a few hundred dollars.
Are you ready to reap the benefits from low-interest rates by purchasing a house? The Houston real estate market is sizzling with opportunities. Contact us to learn more about how to take advantage of low-interest rates and get into the house of your dreams!