The question is "What will interest rates do since the Fed is not purchasing bonds any longer?" At this point they have signaled that they are going to not raise the interest rates they charge to banks which means that rates will still remain very favorable for at least a short amount of time or longer. The big issues that are still hanging over our heads is in the European markets moving toward recession, China's growth slowing, and the conflicts that we are embroiled in. All of these things can have and will have an impact on our economy at some point if they continue to worsen. Our own state of affairs is also a concern because even though we are told our economy is getting better it has not bounced back as it has in the past for numerous reasons. So with all that said, I believe we will see a rise in interests rates sometime this next year. I can't say when but I do believe it will be happen by mid-year. Rates could increase up to approximately 5% by then. Of course this is just me using my crystal ball and hoping we don't see it at all by that time. I just have to be realistic though and share with you my feelings. Many people purchasing homes don't remember that interest rates in the past were much higher than what they are today and it may come as a shock when rates finally do increase. There is no doubt in my mind that rates will increase, it is the timing that is uncertain. This leaves me to believe that over the next 8 to 10 months is still a great time to buy based on mortgage rates. If I were getting ready to buy (which I am) this is the right time. Posted by Roxanne DeBerry on
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