With the possibility of the Fed pulling back on it’s “QE3″ stimulus program looming, mortgage interest rates are poised to bounce higher again soon. The Fed has been compressing interest rates since 2009 in an effort to spur the US economy. As the economy has shown signs of improvement this year the likelihood of the Fed pulling back on its stimulus has increased. In anticipation of the Fed pullback there has been an increase in interest rates since May.
Rates are still very low by historical standards but they will probably be significantly higher in the months and years to come. If you are considering buying a home, refinancing to a lower rate, or refinancing out of an adjustable rate mortgage (ARM) into a fixed rate, contact us today. Rates will likely be trending up for quite a while from here so the time to get started on a new mortgage in now.