Interest Rates are Creeping Up
Higher than they’ve been for a while, hovering in the 6.5% to 6.75% range (30 year mortgage with 0 points) depending on loan amount. (The higher the loan amount, the lower the rate.) Historically, that is still low, though closer to average over the last ten years. I would guess this will be a short-term increase and rates will settle back down to the 6.25% to 6.5% range. Having watched rates through three presidential election years in my real estate career – 1996, 2000 and 2004 – I’ve noticed that rates tend to be reasonably good as elections approach. My cynical view is that the incumbent administration pressures the Federal Reserve (the chairman is, after all, an appointed position) to help keep rates low so the public will feel good about the economy. Soon we’ll be heading into an election year, we’ll see if I’m right.
