Can interest rates keep dropping?

Can interest rates keep dropping?   While interest rates went up for the first quarter of 2013 and many expected this trend to continue,  April has started out with a drop to 3.5% bringing us back near the record low of 3.32% reached in December of 2012.  According to Fredie Mac the average  interest the week of  of Dec. 13, 2012 for a 30yr fixed loan was 3.32% setting a new record low down from 3.98% one year earlier.   Rates  have come a long way from record highs set in Oct of 1981  when the average interest rate for a  30 year fixed rate loan was 18.45%.

Now may be the perfect time to buy.  Interest rates are likely to stay low for a while, but we are seeing home prices increasing for the first time in 5 years.  Anyone buying in the next three months is likely to be able to say they timed the  market and bought at the peak of the affordability index.

 

Brian Clinger

Brian Clinger

West Michigan's Relocation and Marketing Expert
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