Mortgage Interest Rates have been the topic of many news article, blog(including this on) and nightly news for the last 60 days or so.
Everyone is setting with baited breath to see if the Fed will ease its $85 billion infusion of cash into bonds. This action has artificially deflated mortgage and other interest rates for months!!!
Had the Fed eased up much sooner, no doubts rates would have risen, modestly by most economists expectation. The U.S. economy is expanding but not at such a booming rate that money demand out strips the buckets of cash that banks are setting on at the moment.
Thus, one has to wonder why is there concern now that an inevitable return to a "normal" mortgage rate market must occur. It had to!!!
And as you will see by the two graphs below, whether it is today or in 6 months that the Fed stops artificially depressing interest rates, said action will cause interest rates to rise.
Thus, it is imperative that all buyers act now as the cost of inaction will be noticable to their pocket book. No matter the price range!
READ AND BELIEVE!!!