After the Great Recession ended, mortgage interest rates have remained low, to the point where if you haven’t refinanced since 2008, you have to get it done. However; the economy has begun showing signs of recovery, and the US Central Bank is talking about raising benchmark interest rates to match the recovery. (We think it will happen this fall). While we won’t see rates in the teens again, your window for a low interest mortgage may be closing quickly.
However; the government also doesn’t want to cripple the market by raising rates during an economic downturn. This could cause massive volatility in the market, just like when they tried it in 2013. Just talking about it then tanked the stock market and raised mortgage rates a full percentage point. A point, by the way, is a BIG DEAL on your mortgage. It can be thousands of dollars over the life of your mortgage. Check our mortgage calculator to see how much!
If Greece is still falling apart this fall, however, that could all go by the wayside. How Greece goes could affect the Eurozone market, and if the markets get frightened, the Fed may not want to touch the higher rates. The main factor to be wary of is if the European Central Bank as to fully bail out Greece again. That can cause a spike in the price of the dollar. That can hurt US exports by making them more expensive. When THAT happens, the US economy can stagger a bit, causing the fed to delay raising rates to keep the upward mobility of the economy moving. That would keep the low mortgage rates around longer.
This is the time, though. If you want to make sure that you lock in the lowest possible rates, apply today to refinance or buy your new home. You can gamble that the rates will stay until the end of the year, or you can lock in, right now, at some of the lowest rates we’ve seen in Chicago in years. Call The Home Loan Expert, Ryan Kelley, today in Chicago at 773-770-4727 or apply at www.thehomeloanexpert.com today. Nobody makes it easier to refinance or move into your Chicago home than The Home Loan Expert, Ryan Kelley.