If you have been sitting on the fence trying to decide if you should or should not purchase a home. Of course you know that buying a home gives you more security, builds your wealth, gives your family a sense of well being and success. Helps to improves your childrens grades and builds your new worth faster than most other investments.
But if you have made that decisions to purchase or build then you need to be concerned if rates are going up.
Many predictions have been published regarding the whether interest rates will raise 1% OR 2% IN 2014 but very few economist are predicting rates to same the same or fall. It is widely known that the FED has been purchasing 85B in bonds every month. But with the economy continuing to grow and job growth preparing to make some good gains, the FED may start to TAPER the purchases of these bonds starting early this year.
Fed says “the economy is growing moderately”.
Fed says ” it will keep buying $85 billion a month in bonds until the outlook for the job market improves substantially”.
Bond purchases lower long-term interest rates which encourages consumers to borrow, spend and invest.
The Federal Reserve also said that it would maintain its plan to keep short-term rates at record lows, until unemployment reaches 6.5 percent. With the U.S. unemployment improving to just under 7% and Florida’s unemployment dropping to just under 6.5 it seems home mortgage interest rates are poised to start climbing in 2014 and 2015.
Consumers that have been or are considering a major purchase such as home should consider that every day they wait will cost them money. When it comes to purchasing power it’s the APR that is effects the payment more than a slight difference in price.