Hey guys! Here’s some big mortgage news this week…Federal Reserve Chair Janet Yellen said they are planning (3) quarter point increases this year.
Let’s do the math… 30 year fixed rates are hovering between 4.25-4.375% right now. If those increases happen, we are looking at 5% interest rates by year’s end.
Now, don’t panic. Let’s remember that mortgage interest rates are still historically low. My first condo – bought in 2003 – was at a 5.875% interest rate and that wasn’t too shabby back then. Here’s a snap shot of the historical rates since 1971. We aren’t doing too bad, but we are due for an increase.
Here is a link to my Youtube where I talk more about that big announcement, as well as 2 other big pieces of news: the HELP program is ending in Illinois as of today as the money got used up…..and January was the busiest January in terms of homes to contract in 9 years.
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