I read an article today that I wanted to share with everyone. To preface the article home loan rates are typically about 1.5% to 2.5% higher than the 10 year treasury note. Many home buyers have either decided to hold off for rates to come back down, or they have been unwilling to lower their price range. If the actual market does perform the way this article expects it to perform home loan rates over the next 18 to 24 months will be between 5.5% and 8%. Over the past 16 months we have become very accustom to the fact that rates will always go back down or get lower at some point. However over the past 15 years that is not always the case and anyone who purchased a home in the 90’s can attest to this. My personal opinion is that rates are still extremely low from a historical perspective and this cannot last forever. If you are in the home buying process and you find the home you are looking for, don’t let a 4% or 5% interest rate scare you away or you may end up staring a 7% rate in the face two years from now.
See Article: cnbc.com/id/100926417