A few days ago, Indy Scene Team sat down with a mortgage lender, and naturally, drilled him with questions.
We asked one very important question that homebuyers everywhere are wondering: “Where do you see interest rates going in the immediate future?”
Everyone knows that interest rates have slowly but surely inching up the past few months. As of two days ago (Aug. 28th), a 30 year conventional mortgage was at 4.5%, and a 30 year FHA loan was 4.25%. Christie just bought a house at the end of March, and got a 3.75% interest rate on a 30 year conventional!
According to our friend the mortgage lender, the interest rates will likely hit 5% by the end of the year. First quarter of 2014, they may rise a bit more and hover around 5.25%. Will they go down again after that? Only time and the economy will tell. But for now, if you’re on the fence about buying a house, and really want to avoid paying a 5% plus interest rate, now is the time to buy!