After 9 tough years of rebuilding ur economy short term rates finally went up in December 2015. The Fed signaled that rates would probably continue to go up so what is the probability of that and does it directly relate to long term mortgage rates? If you are wanting to buy an Oklahoma City home for sale, long term rates are fine. If you have an adjustable rate that resets every year that will increase. Long term rates can even go down when the Fed raises rates and mortgage backed securities have different reasons for going up or down. Inflation is always a big factor in long term rates but with energy down that is not a big deal right now. Also when there are worldwide economic problems like we see in China right now the flight to quality is in US Treasuries and US mortgage backed securities. The key factor for 2016 will be the Fed meeting in March. If the Fed raises again at that meeting it would signal their belief that inflation is here despite low energy prices and that may mean more raises in 2016 and that would affect mortgages. Think of it this way, if you are looking for an Oklahoma City home to buy or to buy anywhere and you want to be conservative, then you have a 3 month window in which to lock in great rates. If you are a gambler then watch the fed closely for any signals that inflation is here in their opinion and if you don't get a raise you are fine. I would be happy to consult with any Oklahoma City are home buyer or seller to talk about this and other factors in whether this is the time to buy or sell. Please contact me at joe@joepryor.com.
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