What’s Next For Interest Rates?
No one knows but at some point the Fed will have to sell off mortgage-backed securities and that will increase interest rates. The RealDeal.com reported that “Unwinding quantitative easing could push the 30-year mortgage rate past 6 percent within three years, according to Moody’s Analytics. Rising mortgage rates are already putting a dent in demand in the housing market.”
What we do know is that interest rates are at historic lows so if it’s still a good time to buy a home if you plan to hold onto it for 7 to 10 years. Whether you rent or buy you are paying a mortgage, either your mortgage or your landlord’s mortgage.