Interest Rates Predicted to Rise in 2010
by Tyler on 12/28/09
Along with just about everything else like food prices, energy prices, and taxes, interest rates are predicted to rise to 6% by end of 2010. The end of the Federal Reserve program that buys mortgage-backed securities will drive rates higher because the private buyers will demand more return than the Fed.
It’s funny because those who take advantage of the low interest rates now don’t realize how lucky they really are. The interest rates at the present moment are at a historic low and buyers still want them lower. Can you imagine your interest rate at 16% because that’s where they were a few years back? A majority of homeowners could not afford their home and about 78% of the population would be renting.
So it may not make sense for you to buy right now, but if you’re in the market to purchase a home, consider yourself in the right place at the right time. First-time homebuyer tax credit and low interest rates are a blessing.
