Are we nearing the end for cheap money? This week, the downtrend for interest rates hit a wall, along with the dollar rallying on foreign currency exchanges and gold trading back most of its recent gains. All these factors together are signalling higher real interest rates. There are many threads to follow about the economic direction of the U.S. and nothing is certain, but at this juncture, the consensus is December will see a .25 point rise in rates and that means interest rates most likely will increase, and plateau before the actual Federal Reserve rate hike occurs in December. The December Fed meeting will also give further market guidance concerning for rate hikes in 2018.
There are many sources to follow concerning the economic direction of the U.S. and nothing is certain. However, at this juncture, the consensus is a quarter percent rate increase. Typically, interest rates will adjust upward before the actual rate hike occurs. So expect to see rates begin to rise, and in fact, they have already started an upward track.
The December Fed meeting will also give further market guidance concerning rate hike plans for 2018.
Mortgage interest rates do in fact affect housing affordability, and if you are in the market for a home, or even have a home under contract, you'll want to keep track of mortage interest rates to financially protect yourself. Historically speaking, today's rates are unbelievably low compared to typical mortgage rates of 6% to 8% that prevailed for years.
The DFW housing market has slowed now that it is Q4, making now a great time to save money and lock in a lower rate on a new home. View reduced price new homes around Dallas Fort Worth now.
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Mike Askins, Realtor, Owner ARG
Got questions for Realtor Mike? Call me at 214-727-3686 (mobile)