Economic Conversation

The 30 year fixed mortgage interest rate could very well be close to 6% in the coming months if not weeks.  We have seen the government do everything in their power, especially buying up mortgage backed securities, to push interest rates lower.  They have done this since the beginning of March and it has been very effective.  The problem that it could cause is that we will see a slingshot effect when mortgage interest rates do get back to reality.

When the government finally stops buying back all the US debt and things start to normalize, we could see mortgage rates move up as much as a full percentage point in less than a month.  No one really knows when this is going to happen but many market analysts feel that inflation is on the way sooner rather than later.  If you see inflation, we will be sure to see mortgage interest rates move in the direction of 10%.  If we see hyperinflation as some predict, we could see mortgage interest rates at 15%.

If you have been thinking about refinancing or buying a new home, now might be one of the best times ever.  If you wait a few short months, you could see mortgage interest rates a full percentage point higher.  Make sure to do your research and educate yourself on the real estate market, but take advantage of the currently low mortgage rates.