(LibertySociety.com) – During a typical calendar year, the Federal Reserve determines its interest rate, which is the basis for borrowing money across the country. The United States government can control inflation to a degree based on this, but the pandemic threw a curveball into the economy that has caused a unique situation for economic experts as mortgage numbers change.
Although unemployment numbers remain high with the recent Delta variant surge and inflation continues to increase, the Fed is hesitant to raise borrowing rates. This action is keeping mortgage payment possibilities attractively low.
Instant Reaction: "Mortgage rates continued to remain below 2.9% for the last nine straight weeks. Specifically, according to the finance mortgage provider Freddie Mac, the 30-year fixed mortgage rate rose slightly to 2.88% from 2.87% the previous week." https://t.co/x0XqjxCbS7 pic.twitter.com/F3s2UE0Q8C
— Utah Central REALTORS (@UtahCentralAOR) September 10, 2021
That’s good news for people looking to buy a home or refinancing to lower their monthly obligations. The bad news is those same citizens need to qualify for a loan, and with unemployment numbers still coming in high in August, that may prove difficult. In addition, home prices are still higher than average, making it a seller’s market in the real estate realm.
Chief Economist Danielle Hale warned rates would eventually start to move up to address inflation concerns, decreasing buying power across the country. So, if Americans want to purchase a property and can find one at a reasonable price, now is the time to lock in a rate because not even the experts know exactly how long it will be before they drop again.
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