If you are listening to the news to try and figure out what Mortgage Interest Rates are about to do – you might be hearing something about the Fiscal Cliff. Several member of Congress (Barney Frank included) have suggested that we simply Bungee Jump over the Cliff – meaning, don’t try to avoid it, or “kick the can,” just let taxes go up and spending cuts go into place… and see what happens. If you are considering a mortgage – of ANY kind, you need to understand what that could mean in 2013.
Here’s a video from the Wall Street Journal that gives a pretty balanced view of what is ahead of Congress and what the Fiscal Cliff really means.
The Bottom Line? If we don’t figure out how to work this out, kick the can while we work this out, mortgage interest rates will likely go up. My humble guess is that they could go back to 5%… by Valentine’s Day in 2013. Historically, Banks have not wanted to LOWER rates as quickly as they RAISE rates. So let’s say rates go from the low 3% range, where we are today, to say 4.5% in 8 weeks. Does that mean 6 or 8 weeks later rates will be back to the 3% range? It could happen – but it’s not likely.
Haven’t found time to Refinance yet? You might want to make time in the next few weeks.
If you are thinking about SELLING a house next spring – this is REALLY not good news! The Real Estate Market in Raleigh has really picked up some steam. If we went to 5% interest rates – which I think we can all agree is STILL an unbelievably LOW rate… it will mean that First Time Homebuyers will not be able to purchase as much house, and it could keep prices from being able to move up.
Stay tuned! No matter what happens – no matter what rates are – WE have the BEST Mortgage Interest Rates Today! 🙂 It’s going to be interesting for those of us who are Economic Junkies over the next few weeks! Have Questions? Call Steve and Eleanor Thorne 919 649 5058 Connect with us on Google Plus or Facebook!