Interest Rates Could be on the Rise By September
As expected, The Federal Reserve could be raising interest rates on home loans later this year, bit that increase could be coming a bit soon than some may be anticipating. According to recent reports, officials are encouraged by the economic progress we’ve seen throughout 2015, especially when it comes to the indications of wage increases, which are starting to rise more quickly.
Although the exact timing of an interest rate increase isn’t known, analysts close to Federal officials say a hike could be coming as early as September. As noted in a recent article in the Palm Beach Post, John Williams, the president of the Federal Reserve Bank of San Francisco, along with his staff, have concluded there’s been a 1.5% growth in the economy in the first quarter of this year, contradicting other reports that claim a slight economic decline.
An increase in interest rates could slow down what’s been a red hot real estate market as of late, which has strongly been fueled by low mortgage rates that have helped home prices rebound.
So while a spike in interest rates is certainly inevitable at some point, it come sooner rather than later.