Predictions of mortgage interest rates shooting up have been floating around for many months. In May of 2013 when mortgage rates moved higher on whispers that the Fed was going to take its foot off the pedal with regard to its Quantitative Easing program, some pundits speculated that mortgage interest rates would move steadily higher for years to come. But a funny thing happened — rates leveled out last summer and haven’t made an major, lasting moves since then. Rates on most 30 year fixed Fannie/Freddie conventional loans have remained in the mid to high 4’s and rates on 30 year fixed FHA and VA loans have stayed in the mid to low 4’s.
There is no telling what will happen to rates going forward, and it is still a safe bet that in the long run rates will move higher, but for now mortgage interest rates remain quite low by historical measures. With Ben Bernanke out as the Fed Chair and Janet Yellen running the show at the Fed now, it remains to be seen what the Fed will do to continue to stimulate the sluggish US economy.
While the future of mortgage interest rates is unknown, what is known is that rates are historically low right now. If you have considered purchasing a home or refinancing your current mortgage, now is an excellent to contact us to learn more about the various government-backed mortgage programs that are still available.
Just fill in the contact form in the sidebar for refinance information or for home purchase programs fill in the form on this page.