By now I am sure you've heard about he recent credit rating downgrade of the U.S. Government by S&P. The question for us in the real estate industries is, as well as those who are planning to purchase a home, is how will that affect mortgage rates?
While it is unclear exactly how this will affect mortgage interest rates in the near future, it is widely believed, and rightfully so, by many experts that rates will rise. Many experts do not expect an immediate raise in rates due to the poor economy. Many do believe however, that over the next 3-5 years as the economy improves, the mortgage rates will likely raise significantly. With the downgrade in credit rating the government's rates on borrowing are rising, which will cause the consumer's rates to rise.
Here in Lincoln, Nebraska the home prices continue to stay flat and interest rates dipped as low as 3.65%, still making this a great time to buy a home.