I recently had a conversation with Frank Hinkley of Axia Home Loans and asked him the question on everyone’s mind, “How long can rates stay this low?” And here is what Frank had to say:
The first half of this year will be a period of adjustment to fiscal restraint as well as uncertainty of policy going forward. Yet, most economists feel GDP growth will gain momentum over the course of the year, as households and businesses adjust to the new fiscal framework and residential construction steadily improves. Single family housing starts are expected to rise 27 percent this year and multifamily starts should rise near 30 percent.
The housing market continues to strengthen as the excess inventory of homes has gradually diminished, household job/income prospects have improved, bank balance sheets have stabilized, and home prices have moved upward. Interest rates remain at all-time lows as the Federal Reserve continues to use their balance sheet to buy mortgages and keep rates low. Interest rates are likely to rise when the economy has enough momentum to sustain growth without the help of the fed. No one knows for sure when that will happen but now is a great time to take advantage of these interest rates.
In summary, we can’t know when the rates will begin to go up again, but we do know that now is a great time to buy or sell your home. Please contact us if we can answer any of your questions or connect you to Axia Home Loans.
Tony & Amy