By Jason Boone
Do you remember what you were doing in July 1982?
If you owned a home back then, or followed Bend Oregon Real Estate News, you know that mortgage interest rates were 16.82% for a 30-year fixed mortgage loan.
Fast forward to 2015 and you are most likely paying a low mortgage interest rate of 3.98%, or less, for a 30-year fixed mortgage loan.
Yes, mortgage interest rates can be considered to be historically low right now, but, as the economy is growing, Federal Reserve Chair Woman Janet Yellen is anticipating an increase in mortgage interest rates.
What to Expect
In a recent press conference Janet Yellen said that she expects the Fed to raise interest rates possibly by the end of this year since the labor market in the United States has shown signs of recovering.
When pressed on when consumers can expect to see interest rates rise for the Real Estate and other markets in the United States, Mrs. Yellen declined to give an exact date on when rates will begin rising but she did state her preference by saying: “My own preference would be to be able to proceed to tighten in a prudent and gradual manner,”.
How Will This Affect You?
One common question that anyone who follows Bend Oregon Real Estate News wants to know is how will it affect them when mortgage interest rates ultimately rise across the United States?
The obvious answer is if you plan on buying a home or refinancing after the Federal Reserve increases mortgage interest rates you can expect to pay more for your mortgage compared to if you were to take action and buy or refinance a Bend Oregon home right now.
Another question that economists and home buyers across the United States want to know is how will the increase in mortgage interest rates effect the Real Estate market as a whole?
Although we would like to think that it will have a minimal impact on home price appreciation, or sales, the reality is that an increase in mortgage interest rates will make it more expensive for some home buyers to afford to purchase Real Estate.
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