If we have my business, crystal balls, Wouldn’t it be easier to predict trends, what will the future bring? However, since most of them have not found their own personal version of a reliable form of these, it may make sense, to better understand some of the signs and symptoms, which may be useful, in providing us with more information, to make an informed decision! One of these related issues, however, relates to mortgage rates, and determining if, if, and for how long, those interest rates will remain as low (or close) as they are today. With that in mind, this article will attempt, briefly, to consider, examine, review and discuss some of the relevant factors, to focus on these considerations and assessments.
1. Experts are called: The funny thing about the experts is that they don’t all agree. When it comes to interest rates, this may be more – so! The vast majority of economists today, who specialize in this field, believe that we will likely see little change, in these rates, until, at least, after the 2020 elections. Their reasoning seems to be based on some factors, including, political considerations (the president is seeking to reinstate his election), fear of risking economic turmoil, and so on. Inflation mounts suddenly, as it may, and other risks, real and/or perceived, etc.
2. External influences: What are the implications of the potential for escalation of the trade wars, due to the imposed tariffs and/or the rhetoric of President Donald Trump? If the war of wills with China continues for a long time, it will make everything more expensive, such as building supplies, electronics, machinery, and so on. If Japan and the current administration fail to reach a mutually acceptable agreement, this will create additional pressure on the regime. What about the impacts, from our conflicts with our allies, including NATO, the European Union (EU), the UK (due to Brexit), etc.?
3. Economic considerations: If trade wars expand, or even, if many see instability, etc., these economic considerations, may affect the number of potential, qualified, willing, willing, and able homebuyers to seriously consider buying a home, and that would transform the real estate market, from Sellers to a buyers market, and this could have an effect/impact on mortgage rates, in part due to supply and demand!
4. Supply and demand: Like, almost every other aspect of the economy, supply and demand have a huge impact, on real estate too.
Proceed wisely, paying close attention to the effects of a variety of factors, on the future level of interest rates and, in turn, what mortgages may cost. The wise consumer, who educates himself, is the best prepared and ready for any emergency!