Will the Low Interest Rates Continue?

As of today, we have seen the 30-year fixed mortgage rate average in at around 4.3%.  The big question is how long will this last?  According to the National Association of Realtors Chief Economist, Lawrence Yun, there are two reasons interest rates are low.  One is low inflation and the other are the Federal Reserve’s purchase of long-term bonds . Mortgage Backed Securities).  The Fed announced recently that they may be purchasing MBSs (Mortgage Backed Securities), which will lower rates on all long-term loans.  There is a possibility that mortgage rates could go even lower but will not more than likely go higher.  This is good news for home buyers who are still on the fence.  The current median price of a home in Hillsborough county is $186,300 (Q3 2010), with the expectation it will remain about the same in Q4.  The first-time home buyer tax credit boost sales tremendously and sellers are currently feeling the backlash since it has expired.  Of course, there is never a guarantee when it comes to interest rates, but for now, it looks like the low rates will be around for a while.

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Tags: first time home buyer, hillsborough county, home buyers, interest rates, mortgage rates