Affordable homes for our future

Individuals that have been considering entering into a home buying experience over the last, nearly two years, have enjoyed interest rates that have been at an all-time historical low. Even though some analysts have suggested there rise over the next year, interest rates have remained at a steady low of 3.5% on a 30-year, 100,000 plan making the time to buy extremely attractive.

Past current and future rates

It was a quarter century ago that interest rates topped out at just over 10%, ten years later they dipped down to slightly over 8%. The amazing current rates are less than half of the 30-year historical average. The low annual average rates that have held for the last two years show no reason to disappear. Homeowners that decided to take the plunge into buying the home of their dreams now enjoy an astonishing 10.6% savings on their annual family budget, equating to $54 saved a month.

The relationship between rates and economy

It can be a rather common occurrence for interest rates to rise and fall, constantly feeding off of the wide range of variables that influences them. Although it is a commonly shared public sentiment that the national economy has not yet fully recovered, the general public like to feel like things are collectively going well, this makes it easier to enter into the purchasing agreements they desire without any fall-out. It has been historically true that when the economy recovers, housing demand goes up, also being the potential cause behind any rise in rates. All of this said, people still seem slightly more comfortable engaging in a home buying experience than that of just a year ago.

Where things are going from here

Of course where there are analysts, there are opposing results. One side stating that our current rates are safe and will hold well into the next year. Whereas the other side insists that a steady rise will occur over the next year resulting in rates somewhere between 4 and 5 percent. Those people taking advantage of the current low fixtures have been either saving their money or re-investing it into home up-grades.

What you can do

If you find yourself intrigued in the possibilities of what may be available to you, contacting a customer service representative at your local lending and mortgage company to talk you through all of the options that are there waiting to enhance your future.