An Expert’s Take on Our Market’s Current Interest Rates

Today, Eric Almquist of Benchmark Mortgage joins me to discuss the latest trends regarding interest rates. Stay tuned!

Interest rates are very good in our current market. But don’t just take it from me—Eric Almquist of Benchmark Mortgage joined me today for a discussion about the latest trends regarding interest rates.

Anyone who watches the news has seen rates drop by nearly 1% over the course of the last year. That’s happened for a number of reasons, but one of the main reasons is that the global bond market has been rallying. By this, Eric means that bond prices have been going up and yields have gone down. That, in turn, has affected our bond yields, which interest rates tend to follow.

Currently, interest rates are as good as they were in 2016, when they dipped in October of that year due to the Brexit issue in England. At that time, a similar thing occurred where bond yields were pushed down and prices went up.

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From a buyer’s perspective, the market is as good as it has been in a long time.

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Eric believes that it will be hard for interest rates to go up in the foreseeable future. The Federal Reserve cut short-term interest rates, which many confuse with mortgage rates. The Fed only slows down or speeds up the economy by lowering or raising the costs of money borrowed between banks. When the Fed lowers short-term borrowing costs, they’re not concerned about inflation; they’re trying to promote growth. In Eric’s mind, this will only continue to drive rates down over time. 

How low they’ll go, Eric’s not sure. Some experts are predicting historically low rates, but we’ll have to wait to see if that becomes the case. However, that’s not an excuse to wait, as rates are still in a very favorable spot right now. From a buyer’s perspective, the market is as good as it has been in a long time.

If you are looking to buy a home or at least want to see what you’d qualify for, definitely reach out to our team. We can show you our model homes and put you in contact with Eric at Benchmark Mortgage to help you qualify for your next home purchase. Hope to hear from you soon!