Mortgage Rates Will Likely Rise by the End of the Year

For most of the year, mortgage interest rates have been at their lowest ever. One of the main reasons they've been so low is because the Fed was buying Treasury bonds. At the latest Federal Reserve Policy Meeting, this is what they said:

• Recession Ending, Rates Left Alone
  The Feds efforts to artificially reduce mortgage rates will end in October. This means if you want a sub 6% interest rate, you'd probably better act quickly.
  tags: mortgage, interest rates
  • The Fed said, “Economic activity is leveling out.” It added that it expected inflation would remain “subdued for some time.”
    
    The Fed said it will keep the short-term key interest rate near zero, but it will end its program to buy $300 billion worth of Treasury bonds by the end of October. Buying bonds was one of the Fed’s efforts to drive down the cost of home mortgages.

Interest Rates Way Down - 30 Year Fixed. 5.5%

Good news for home buyers and soon to be buyers. Interest rates have dropped to make housing even more affordable.

Right now 30 year fixed mortgages can be obtained at 5.5%. Interest

FHA loans are going for 5.75%.

It's a great time to buy when you consider that home prices are down, and interest rates are great. If you had a $200,000 home loan at 7% interest, you would be paying $1,330 per month P.I. At 5.5% that payment would be $1,135 per month. That's a savings of $200 each monthy.

For more information on available loan products, contact Paul Vaslett with Cache Valley Mortgage. (435) 752-1414