Long Term Mortgage Interest Rates and Unemployment Rate Rise; Home Buyers Face Difficult Decision; Buy Now or Wait Longer?
Posted on | December 12, 2010 | No Comments
Mortgage interest rates are on the rise as is the unemployment rate in the United States. The housing sector is struggling and many could be buyers are sidelined wondering if the economic recovery is moving well enough in the right direction for them to move towards locking in on a long term mortgage.
Long term interest rates have been trending at relative lows along with home prices across our nation, but many still have apprehensions over the stability of the market right now. Many potential buyers are not buying right now, and some wonder if the recent upward skewing of long term interest rate trends might push potential buyers off of the sidelines and into a long term deal. The housing market has been in a free fall and some are waiting because they don’t think it is over. Prices could go lower, so some think. Another problem is the job market. Unemployment rates just jumped up from 9.6% across our nation to 9.8%. Two income families continue to worry if they will remain two income families in the current state of our economy. The good news is that this past week, the market posted signs of a recovering economy and recent job data is showing an increase in hiring. Signs in the economy are pointing up, but interest rates for long term loans are on their way up as well. Freddie Mac just posted rates that increased this past week. Rates are still at relative lows, but an upward trend is forming. Buyers now have to analyze all variables and decide how to move forward. The current climate makes for difficult decision making.
Author: Stephen Johnson