Austin area investors have incredible mortgage rates to take advantage of, and even lower rates may be headed our way for home-loans. The Federal Reserve recently pledged to buy bonds and treasuries in an effort to stabilize the market this spring and, as a side-effect, will push mortgage rates downward.
In a time when rates are already historically low, how much lower can they go? It is possible that homebuyers could see a 30-year fixed rate of 2.75%, according to President of Naroff Economics, Joel Naroff, who recognizes patterns from previous years. The Fed launched similar efforts in 2008, which in-turn pushed rates down below 5% for the first time in U.S. history.
Mortgage rates are likely to either drop slightly or at least remain the same while the Fed keeps any sudden increases at bay. The reserve institution lifted its cap of $200 billion on spending for mortgage-backed securities (MBS). That move creates the additional buying power of the bonds and treasuries as noted above, and the market for these MBS’s is what impacts the current mortgage rates.
For now, only time can tell the future, and what is current is that rates are low, staying low, and consumers should watch headlines closely to prepare for any changes in the market.
If you are considering buying a home or investment property, now is a great time to make a move and take advantage of the all-time low rates. The money you save on a mortgage can easily be pushed into renovations, flipping, and a property management company that will set you up for long-term success and sustainability.
Are you in need of a recommendation for a reputable lender to answer your toughest mortgage questions? Contact Dona Brown; she has a vast network and years of experience to point you in the right direction. 512-721-1094.
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