Homebuyers seeking a low rate on a mortgage are still able to get a mortgage interest rate for around 5%. Locking in a low interest rate on a 30-year fixed rate mortgage can also bring a lower monthly mortgage payment and it is for that reason many homeowners have been refinancing. However, there are those who believe that mortgage rates will begin to rise in April, so these low rates may not be around much longer.
When the Federal Reserve stops buying mortgage-backed securities at the end of March, many believe that the interest rates on mortgages are going to begin to climb. While there are those who feel this isn’t the case, some analysts worry that the housing market could be hurt or suffer a setback if rates don’t stay low.
However some homebuyers that are in the position to purchase a home have been looking to close on a new house in a timelier manner in order to take advantage of these low rates. The first-time homebuyer tax credit and low home prices have also been incentives to buy, but low mortgage rates and the tax credit may no longer be an option in the coming weeks.
If you are looking to take advantage of the low interest rates on a 30-year fixed rate mortgage you may want to do so soon. While there is no guarantee that interest rates will go up, there are many who feel they surely will. However, be certain you are in the financial position to buy a home, because low interest rate or not, buying a home is a big responsibility that shouldn’t be taken lightly.