There are times when home purchasing decisions says Russ Whitney affects the financial stability of the buyers.Many consumers move from renting to a starter home; starter home to mid-level property; and so on. These decisions are predicated on the financial ability of buyers to afford a home more expensive than the one they currently own.
The mortgage rates can’t remain at these historically low levels forever tells Whitney. Sooner or later they’ll have to rise and it looks like 2015 will be the year.The current administration has worked hard to keep rates as low as possible. It may be because they understand the value of housing market creates for the larger economy.
Low Mortgage Rates
There will be less home sales activity and a higher percentage of income allocated towards housing costs.A positive step that Russ suggest is an upcoming rate reduction for FHA mortgage insurance. The rate that has been 1.35 percent is now moving to 0.85 percent.The mortgage insurance rate will give these borrowers a better opportunity to purchase a home.
First-time home buyers will benefit from this rate decrease.The opportunity to sell is always greater during any competition.Long term mortgage rates go up to 6 percent by the end of 2015.