So, the Federal Reserve meets again this week to decide what the economy needs. Specifically, do they need to change the rates and/or policies to strengthen the economy. The really interesting point to watch this week is when the Gross Domestic Product or GDP number for the first quarter of this year is released!
What Affect Will The GDP Number Have On Mortgage Rates?
If the GDP comes in above -3.5% then the fed just might raise the interest rates slightly. This would likely result in the mortgage rates rising just a bit as well! So, if you are considering buying a home you might be well suited to do so sooner rather than later!
If the GDP remains at or below -3.5% then the rates will almost certainly remain unchanged. However, it is very likely that we are near or past the bottom of this recession. As soon as that starts to show in the numbers you can count on the fed raising the rates. Again, this will result in higher rates for mortgages as well.
Should We Buy A Home Now?
The answer is, if you qualify for a home find one that is priced such that you are comfortable with the payments. Then BUY NOW! Waiting will very likely cost you money!
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