The Fed is moving toward normalization. It will finish tapering next month and at the middle point of next year it will begin raising rates. Liz Ann Sonders, chief investment strategist at Charles Schwab Federal Reserve tapers a total of $10 billion and $15 billion left to taper in October. What does this all mean to you? Mortgage interest rates will no longer be influenced by Federal Reserve purchases to keep interest rates on mortgages artificially low. Mortgage interest rates will now move freely based on economic indicators and world events - this is normalization. The Federal Reserve does NOT have any impact on mortgage interest rates normally. The rates they control directly impact the Prime rate - i.e. Home Equity Lines of Credit and Credit cards - and those loans associated with Prime rate. Rates will increase from their current levels on mortgages - it is not an If, its a When. And When is coming soon. Now is the Perfect Storm to purchase a home - take advantage while rates are still low and the housing market continues to heal.
Posted on: Wed, 17 Sep 2014 18:44:55 +0000
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