Why Fed Reserve Will Raise Rates
Recently, Deery shared important news regarding upcoming changes from the U.S. Federal Reserve. In December, the Fed announced it would begin tapering its aggressive bond-buying program, planning to trim equally from both mortgage and Treasury bonds. This change heralds the end of the measures the Fed made to bolster the U.S. economy during its recent struggles.
The change is a result of improving economic data for the U.S, indicating the country’s economy is truly on the road to recovery. The tapering of the Fed’s monetary stimulus program called Quantitative Easing (QE) will begin in January and continue throughout 2014. When it comes to the housing marketing, this gradual increase will result in increasing mortgage rates throughout coming months. However, the current market still offers outstanding opportunities for prospective homebuyers.
“This decision from the Fed is a trigger to get out there and look for a home while rates are low, as the Fed is still giving buyers the opportunity to borrow money at a discount,” said Deery.
He noted that, although the announcement signals a move toward a higher rate environment, it’s still important to put current rates in perspective.
“Mortgage rates continue at all-time lows,” said Deery. “Overall, it’s still a great time to buy a home, as the Fed is still offering money at a discount, so take advantage of this while they continue to do their monetary stimulus programs.”
Deery recommends that buyers who have been on the fence about buying a home or refinancing should act earlier rather than later because of the rising rates.
read more at: http://www.utsandiego.com/news/2014/jan/04/mortgage-specialist-honored-shares-why-fed/
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