In late September, interest rates fell approximately a half point following the announcement that the Federal Reserve would continue their pace of bond purchases. The purchasing of bonds has acted as a stimulus package for the housing industry as it has kept mortgage interest rates at historic lows. However, rates are again inching upward.
If you’re considering buying a home, either as a first-time or move-up buyer, there’s currently a window of opportunity to get a lower interest rate. Ben Bernake, Chairman of the Federal Reserve, indicated that the Fed may scale back purchasing as early as the end of the year, based on the overall outlook of the housing market. For buyers and sellers, this means that rates will likely increase starting in December.