The new normal market rates

Fox Valley Area Homes – What’s the “new normal” for mortgage rates?  It can depend on who you ask.  For example, any Realtor  can tell you that the mortgage rates rising and falling over the past few decade are as sure as the sun rises.  Some brokers have seen 18% rates and others have seen as low as 2% on exotic 1 year adjustable rate mortgages.  The past few years have seen record low mortgage rates, as this article from Redfin indicates, 83% of home buyers think below 5% interest rates on home loans is “normal”.

http://www.redfin.com/research/reports/special-reports/2013/83-of-homebuyers-think-a-mortgage-rate-below-5-is-normal.html#.UtMONZ5dXEV

However, to think rates are “locked in” to remain this low for much longer is unrealistic.  Rates are already up from this time last year and will slowly rise, reducing buying power a little bit each time.   Talk to a mortgage lender today to get the current information on interest rates and don’t wait until spring to get pre-approved for a home loan.

Have questions on where to get started?  Just ask!

Jennifer@ElginFoxValley.com

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