Understanding how factors influence interest rates is extremely important, especially with the 2016 presidential election looming over every American.
Understanding how interest rates will shift in the future is an important aspect of being an educated citizen. To understand the future, one must always look to the past. 2010: interest rates fell to historic lows due to the collapsed economy. 2012: the interest rates hit rock bottom at an average of 3.66 percent. They have been rising slowly since then, but what’s to come of the latter quarter of 2016 and all of 2017? Here are what the experts believe in the rising of interest rates for 2016 and 2017.
- Interest are unlikely to go up anytime soon
Many parts of the world are still feeling the worst of the 2008 recession. With the U.S. being the world’s reserve currency, it is in no position to raise the rates dramatically. $13 trillion sovereign bonds currently exist with negative yields and interest rates are unlikely to rise higher than 3 percent in the future. - Prepare for the inevitable interest rate rise
Interest rates will rise again, but determining when is the tricky part–and likely impossible to pinpoint the exact day. When interest rates rise again, they could do so very quickly and they’ll do so before you have time to react. - Interest rates shouldn’t impact your purchases
Even if rates were to increase 0.25 or 0.50 percent, the rates would still be at or very near historically low mortgage rates. If you are on the lookout for a new home, it’s still a great time to buy a home.
Interest rates are an important number that you should always keep an eye on if you are looking to buy a new home. For all of your home buying needs throughout the Solana Beach, California area, contact the professionals at Ranch & Coast Mortgage Group Inc.
