With interest rates likely to increase soon, I thought I wouldshare aBoston Globe article about how upcoming changes may affect home buyers.Written by Paul Anastos, a frequent national mortgage speaker and an authority on residential home loans, the article explains how the Federal Reserve works in regards to keeping the nation's financial system safe.Home loan rates tend to stay in step with Treasury Bond rates. These bonds serve as a way of funding government operations by providing a way for the nation to borrow money.The Federal Reserve's Open Market Committeeregularly reviews the market to make decisions about interest rates, securities, and other conditions that may affect interest rates and how easy (or not) it is to get home loan financing.As Anastos explains, a shift in interest rates might be felt eithernegatively or positively depending on what it is you're looking to accomplish:
High interest rates make borrowing more expensive, so you end up paying more for home and car loans. On the other hand, your savings and money market accounts will earn higher interest. When interest rates are kept low, the opposite occurs. People earn lower interest on savings, but they can more easily borrow money.
If your goal is to buy a home soon, you may want to consider his advice to speak with a local lending officer to lock in a rate while they are still low.Read the Boston Globe's How Fed Rate Changes Affect Home Buyers.Are you thinking about where to livein Boston?If you have questions about buying or selling homes in the Boston real estate market, please call me at617-584-9790, orsend me an email via the linkbelow.
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