Mortgage rates have been low – at or near historic levels – for nearly seven years. It’s become easy to take them for granted. But as the US economy continues its slow, steady rebound from the dark days of 2008, it exerts upward pressure on mortgage rates.
The Federal Reserve generally meets eight times per year to review economic indicators and set fiscal policy. Though nothing is carved in stone–until it is–many analysts believe rates will soon be on the rise again.
In a November 4 New York Times article, author Binyamin Appelbaum wrote, ‘Two senior Fed officials said the Federal Reserve could raise its benchmark interest rate in December as long as economic growth continues… hammering that message in repeated public remarks.’
Additionally, Janet L. Yellen, the Fed chairwoman, recently told the House Financial Services Committee that, “The economy is performing well,” and “…it could be appropriate” referring to the Fed raising rates at their final policy meeting of the year, which is scheduled for mid-December. Yellen did emphasize that, “No decision has been made.”
The Fed is already starting to tighten certain financial conditions, even as officials consider the appropriate time to raise rates, given the nearly seven year stretch of near-short-term rates.
What does this mean to you?
If you haven’t refinanced to a lower rate, or are looking to buy or build in the short term, consider locking into a low interest rate now. Contact Lake Michigan Credit Union’s mortgage department at (844) 890-9767 or visit lmcu.org or any branch to get started.