You may have seen the headlines recently advertising that we are currently seeing the lowest mortgage rates ever across the nation. What you may not realize is that these low rates are not going to last forever. A lot of people are suggesting that the rates could go lower but the reality of trends in the marketplace indicates that there’s a good chance that mortgage rates are going to go up in the not-too-distant future. Housing rates are also likely to rise which means that right now is the best time to look at investing in real estate.
Connecticut Mortgage Rates as an Example
Let’s take a look at the situation with Connecticut mortgage rates as one example of what is happening nationwide. Mortgage rates in CT are at an all-time low for the recent history of the state. This means that people can look at investing in a CT mortgage even though problems with the economy and unemployment in the state have decreased income there. These same problems have caused a decrease in home values due to lack of sales in the area.
What this means is that people who take advantage of the low ct mortgage rates today will be getting in during a time when real estate in Connecticut is at its cheapest. As people in the area start realizing what a good investment this could be, competition in the housing market will rapidly increase. This will drive up home rates in the area. It is likely that this will be followed by a corresponding rise in the mortgage rates in the area.
At the same time, problems with income related to the recession are unlikely to see an immediate resolution in Connecticut. People here will continue to have difficulties with money that would prevent them from taking advantage of an investment in real estate if mortgage rates did rise. This means that right now is the best time for those people to think about making that investment.
Extrapolating that Example to the Rest of the Nation
Connecticut is just one market but it’s representative of what’s happening in the rest of the nation. Where we may see some variation is in markets where the demand for housing is higher and the unemployment rates are lower. Despite these small variations, it’s safe to say that the housing trend is such that right now is the best time to make a smart investment in real estate. Finding a way to do that in spite of economic problems could be a really wise move for your future.