Interest Rates Drop to All Time LOW
Have you heard that interest rates are now down to an all time low? Well you have now…the current average rate for a 30 yr fixed loan is 4.87%. The reason cited for this ‘slide’ is Europe’s debt crisis which pushes nervous investors to the security of US Treasury’s, which pushes down their yield and influences mortgage interest rates.“It’s the best time in our generation to buy,” says Mark Zandi, chief economist at Moody’s. “It may be the best time in any generation. Mortgage rates are so low and with homes prices down and lots of inventory, you couldn’t pick a better time to buy.”
Europe’s debt crisis will fade and investors will be looking for other assets which will drive the yield of Treasury bonds up and interest rates along with it.
“I think they won’t last much longer than a month or two at the best,” says Lawrence Yun, chief economist at the National Association of Realtors. “I can see them going up to 5.5 percent by the end of June if not sooner.”
Time for buyers to get it done!
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