Mortgage Rates Finally Ready to Climb

After more than a year and a half of unnaturally depressed mortgage interest rates, it seems that the Fed is poised to make that change – for the worse for borrowers. Some argue that this is exactly what the economy needs, to spur a real recovery, not an artificially government financed one, even though it may be very painful up front. Some say though, that this could make the economy fall into an even worse pit.

I’m no economist myself, so I can’t really comment on the ins and outs of increasing the mortgage interest rates at such a delicate time in the American economy’s history. However, I do think that if you are a consumer who is thinking of buying a home, you need to take advantage of the low rates soon, before they disappear for good if you’re in the market to buy a home. There may be a sort of gold rush on for the lower rates before they go up again.

The small incremental increases have been happening for the last four weeks, and are thought to be the signal that they will not again go down to the historical lows we saw as of late. What does this mean? Well, it could mean several things. The Fed may have rising confidence the economic signals are looking better and better for a recovery, so they finally decided it was time to put an end to the historically low rates.

It could also mean that the Fed, once again, doesn’t know what it’s doing though. There are still numerous things up in the air when it comes to the delicate balance we are in now. Employment still needs to shape up big time, and we need to see a stead, dramatic increase in consumer spending as well before we should be making such changes, some think.

What do you think? I know that if you are going to buy a home, you should seek out mortgage rate comparisons now, that’s what I think!