When the Federal Reserve stops buying mortgage-backed securities at the end of March many people feel that mortgage interest rates are going to start rising. With that in mind, home prices are low at the current time, along with interest rates; so many real estate investors are wondering if now is the time to buy homes as an investment.
Obviously, a low cost home that comes with a low mortgage rate is going to be a good deal to an investor just as it could become an affordable buy for any would-be homeowner. However, if speculation is true and mortgage rates do start to rise after the Fed stops buying mortgage backed securities, is the window to invest in low cost real estate closing?
Many people worry that when the Fed stops buying these securities the housing market is going to suffer and possibly slip backwards from the progress that has been made thus far. Other analysts believe that mortgage rates are likely to stay low for the reason that the housing market still isn’t as strong as many would like, but only time will tell.
As for real estate investors, one has to look at the possibilities. If interest rates are set to rise, perhaps now is the time to invest in real estate, again seeing as how home prices and interest rates are very affordable right now. Yet, there is the chance that rates may stay low or housing prices continue to drop, so any real estate investor would do well to factor in these predictions and then look at forecasts for real estate in their area before moving forward.