In an announcement from the Fed this week, all evidence is pointing to a hike in interest rates before the end of the year, as the domestic economy continues to improve.
A strengthening economy is encouraging for every American, but if you’re one of the many who are on the fence about buying a home or refinancing, allow this to be your wake up call. The historically low interest rates you’re seeing will not last forever. In fact, they may not last until the end of the year.
Locking in a low interest rate now before these rates rise could mean big savings over the life of your home loan.
Federal Reserve Chairwoman Janet Yellen continues to predict this rise in rates, stating the action would likely begin “at some point this year,” according to The Wall Street Journal. Additionally, many economists are targeting the first rate increase to take place in September.
Since there’s no telling exactly when this hike in interest rates will occur, it’s up to you to decide whether to be stuck with an interest that’s considerably higher than what it was a month before, or have a historically low rate, keeping money in your pocket.
As these announcements from the Fed continue, the answer will increasingly become clearer and more urgent: The time to buy or refinance is right now.
Don’t miss out on your chance to secure a low rate. Contact a ditech Home Loan Specialist and begin the home loan process today.