I think it is inevitable. How rates have been maintaining the level they have been hovering at the past few weeks I have no clue. I guess the mortgage backed securities market is just in a wait and see mode. Fannie and Freddie today reported large profits on recent loans. But it is coming. A rate correction.
The possibility of rates dropping are still a reality, but sooner or later, they will turn for the worse. Chatter from the Fed this week is to expect a rate increase and soon. Take interest rates out of the equation and you will find home prices an unbelievable bargain and many predict housing values to continue to slide.
So here is the big question - Are higher interest rates a fair trade off for buying property at 60 - 70% of values from just three years ago? If you are looking to time the market when it hits the sweet spot of low rates and low values this could be the time. Consult with a mortgage expert while the timing is right!
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