How High will or Can Mortgage Rates Go?

The Feds issued their minutes this afternoon and hinted that a end of rate hikes "may" be near at hand. It still appears that another .25% increase is very possible at the next meeting on May 10 with a possible easing to look things over before the next meeting on June 28-29. What does all of this mean to the borrower? If you are building a new home now and are close to closing on it you might want to look at locking on some rallies (like today for instance). If you are more than 60-90 days away from completion you may see a small increase in rates of .25-.50% by the time you are ready to lock. You need to consider the payment increase in your budget as it is a very real possibility. In the overall picture though rates are still very low and have been so for a long time. If you are looking for a new home do not let the rate increase possibility push you into a home that you may not want. With home prices leveling off or even dropping in overheated areas time may actually be on your side by a reduction in the price. Rates have actually improved in the last 2 days to help offset last weeks increases but all still up from the previous week. Happy house hunting if you are looking or enjoy that new home if you are building. www.rateinformer.com