Last week, Bernard Bernanke startled many by announcing that the Fed will not wind down their bond buying program right now. The program is part of an overall stimulus package geared at bringing back the national economy. The Feds purchase of these bonds over the last few years has driven mortgage rates to historic lows. The assumption that there would be a reduction in bond purchases has caused 30 year mortgage rates to spike upward over the last few months.

Interest rates have recently dipped down, but we expect them to go up over the next year. What does this mean for buyers? Homes will continue to be affordable, and now is a great time to buy. During the fall we see a slow down in sales and less competition, it is easier for buyers who are looking for a good deal because they’re able to take their time and negotiate on their dream home.

If you’d like more information on interest rates, first time home buyer programs, or buying in twin cities area, give us a call today! We’re experts on homes for sale in the west metro area

Doyle Real Estate Team – Edina Realty – Maple Grove, MN

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