According to a recent New York Times article, we are about to enter a sustained period of rising interest rates. This outcome results from the nation’s ballooning debt and the prospect of inflation.
The impact will be felt initially in the housing market. Current rates are up about a half percent from December levels. The Mortgage Bankers Association expects the rise to continue; the 30 year rate going to 5.5% by summer and maybe as high as 6% by year’s end.
No one’s expecting a return to the 1981 levels of 18.2%, but they don’t really know how much they will go up.
Bottom line: There’s no time like the present to buy a home!
Photo credit: flickr | dcjohn