Mortgage News: A Signal That the Time to Secure Your Mortgage is Now

During the past two weeks, news reports indicate the time to lock into a mortgage is now for buyers who want to preserve their purchasing power.

As a prospective homebuyer, two factors outside your control influence the amount of money you can spend on your new home: the range of interest rates for your mortgage and the fees associated with your loan. While your personal financial situation needs to be your primary consideration when deciding whether it is the right time to apply for a mortgage, the timing of when you actually secure your home loan allows you to take advantage historically low interest rates. Unfortunately, it appears these market conditions may be ending soon.

Fed Signals Rate Increase Likely in Mid 2015

The U.S Federal Reserve sets the benchmark interest rates the banks pay for loans, which, by extension, affects the interest rates paid by consumers on mortgages and other form of credit. Since the Global Financial Crisis, which occurred in 2008, the Fed has kept interest rates near zero in order to spur economic growth. Since most of the major economic indicators have shown improvement, Janet Yellen, the chairperson of the Federal Reserve, has signaled that the Federal Reserve may start to increase interest rates starting in July 2015, according to a report by ABC News. This suggests that home interest rates will start increasing during this time frame.

To find out if you are in a position financially to take advantage of record low home interest rates, contact a local independent mortgage broker today!