The average rates on fixed mortgages in the U.S. rose this week, just after Federal Reserve Chairman Janet Yellen suggested that short-term interest rates could increase by mid-2015. These rates have increased nearly an entire percent compared to this time last year, when they were at an all-time low.
The Fed also stated that even though the short-term interest rates will increase next year, as inflation rises and a stronger job market emerges, the rate will still remain unusually low. They intend to keep rates close to zero for a “considerable” amount of time, raising them gradually.
With that comes the news that the overall home-sales market in the U.S. will mostly likely improve just in time for spring. As the weather turns warmer, the open house traffic gets heavier. And as the school year ends, families are eager to start their new home search!
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