Is it still a good time to consider a mortgage?
September 23rd, 2015
By: Carolina B. Menendez, , Sabadell United Bank NMLS: 613200
Last Thursday, the Federal Reserve announced that interest rates would remain unchanged, as officials continue to evaluate how the U.S. will be affected by a weakened global economy. The Fed anticipates that rates will rise, albeit slowly (0-1/4%), once it has seen improvement in both the labor markets and inflation (back to its 2% target objective). For a copy of the Fed’s full statement issued on September 17, click here:http://www.federalreserve.gov/newsevents/press/monetary/20150917a.htm
The Fed has not raised rates in nine years and experts’ predictions of when a rate hike will occur range from late 2015 to 2017. According to Freddie Mac Chief Economist Sean Becketti, “While our outlook incorporates a moderate increase in mortgage rates over the next 18 months, rates are likely to remain low by historical standards and should not be a determining factor for most Americans looking to purchase a home.” “We’re still on track for the best year of home sales since 2007,” he added, noting that Freddie Mac “is keenly aware though that any rate increase will have a larger impact on low-to-moderate income families looking to finance a home purchase.”
Although a Fed rate hike might not be the only factor contributing to eventual home mortgage rate increases, the fact remains that we are still at 50 year near record lows. Ie. Today is definitely still a good time to consider a mortgage for a purchase or refinance. Sabadell offers mortgages based on conventional debt to income underwriting guidelines but also has specialized underwriting guidelines for high net worth clients and non-resident aliens based on post-closing verified liquidity. Please contact Carolina Menendez, Senior Vice President at Sabadell United Bank’s Private Banking & Wealth Management group for more information 305-376-2427 firstname.lastname@example.org.