 |
| history of the national average interest rates since 1985 |
Mortgage rates continue to hover at extremely low levels. For instance, today’s 10 year fixed rate mortgage is 3.25% and today’s 30 year fixed rate mortgage is 4.50%. Borrowing money to refinance or purchase a home has rarely, if ever, been so cheap. HOWEVER . . . . . Don’t wait too long as history always proves, "nothing lasts forever."
On August 9th, 2011, the FOMC (Federal Open Market Committee – the policy making branch of the Federal Reserve) will meet once again to discuss interest rates. The FOMC uses the Federal Funds Rate* as its primary tool to influence interest rates and manipulate the economy. If the FOMC decides to change this rate, it will most likely increase, meaning money will become increasingly expensive to borrow. Though it is unlikely that the increase in the Federal Funds Rate will be drastic, one can never be sure of anything. This Committee meets roughly every six weeks to discuss interest rates so don’t gamble too much longer!
Let us at Ocean Communities FCU help you see if homeownership is right for you and take advantage of great rates while you still can. If you currently own a home, it is a great time to restructure your balance and pay back less interest- who doesn’t like to save money?
*The Federal Funds Rate is the interest rate in which depository institutions lend balances to other institutions overnight or basically the rate in which depository institutions charge each other for loans.
