How Long Will Low Rate Home Loans Hang Around?
Interest rates on home mortgages have been very low over the last couple of years or so and appear to be staying that way. Fortunately, this means you’ve got time to find a house that you like, time to save the money you need for the down payment and other fees and time to figure out which mortgage is going to be the best for you. However, as volatile as today’s economy is, everyone is wondering how long will low rate home loans be around? Unfortunately, there isn’t really a simple answer.
Most of us have read or heard that the main reason for the economic recession that has been so devastating to the U.S. and world economy was that many major banks made questionable housing loans that weren’t successful. This caused the largest retraction of the economy in decades and virtually killed the housing market leading to foreclosures, few new builds and a crash of existing property prices. Now that housing prices are as low as they’ve been in a decade many feel now is the time to take advantage of a low rate home loan to buy.
Since the Fed has lowered the Prime Interest Rate to bolster the economy, and since the economy is still weak, people are wondering just exactly how long interest rates will remain low so they can take advantage of a low rate home loan. Experts differ in their opinions but most concur that interest rates will remain low for years to come, perhaps for the next decade. They all point to a myriad of factors to highlight their assertions that loan rates won’t be increasing anytime soon.
Since so many people want to know how long interest rates will remain low, TV shows like The View and Good Morning America have interviewed economic experts explain what’s going on in the housing market and with the economy. These experts state that with so many bank failures, bail-outs and mergers because of the loan failures that hit the housing market totally undermined the economy and the economy is just now starting to recover. Because of this, some feel that low rate home loans will continue to be available until 2015 at least, while others feel that low rates will still be available until 2020 or even longer.
As of today, you’ll find lots of mortgage companies with the best loan program that will eagerly give you a loan with an interest rate of just over three percent which is significantly lower than rates were in the 90′s and early 2000′s. These rates don’t appear to be going up anytime soon so now may very well be a great time to take advantage of a low rate home loan so you can finally buy that dream home.