Rates are lower than they have been for almost two years. A question I hear a lot from borrowers and Realtors is, "where will they go from here?". While I do not claim to have a crystal ball, it seems to be a given that they will not go any higher and could possibly continue to go down in the near future. The Fed will meet again on January 29th. It is widely speculated that they will again lower the Fed's benchmark lending rate.
So, what does this mean to you? If the Fed lowers its rate again, that will have a direct impact on anyone who has a home equity loan or line of credit that is tied to the prime rate. It will also lower the rate you pay on your credit cards. On the mortgage side it will have the quickest and most dramatic impact on adjustable rates. With 3-Year adjustable mortgages nearing 5%, we could see those in the 4's after the next Fed meeting. The 30-Year fixed rates are solidly in the 5's and seem to be inching lower on a daily basis.
So - tell me where you think rates are going and if you dare, why!
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