Mortgage interest rates have been a hot topic for months now, and it’s no different here in Elmhurst. The long-standing trend of record low rates may be changing, however, and that’s important news for anyone considering purchasing a home this summer.

According to Jack Jones, Mortgage Loan Officer at Fairway Independent Mortgage Corporation (NMLS ID #543267), the days of getting a rock bottom interest rate are coming to a close. He notes their volatility over the past six months – more so than at any time in the past year – and their increasing tendency to become even more volatile as each day passes. Rates are now from 0.5 to 1.00% higher than they were just one month ago.

Jones admits that the forces behind these fluctuations are complicated, but he notes that a large part of it can be attributed to what Federal Reserve Chairman Ben Bernanke has to say. Last year Bernanke announced that the Fed would stop its Quantitative Easing program, the government’s $65 billion-per-month program to artificially suppress mortgage rates by purchasing mortgage-backed securities (MBSs), when either the rate of inflation exceeded 2.5% or the unemployment rate dropped below 6.5%. This past January, Mr. Bernanke announced that the Fed would stop purchasing MBSs by January 2014. Later, he expanded that idea to include a tapering off process so as not to cause an instant mortgage interest rate spike, but declined to state when that tapering off would begin. Then, in a June 19th statement, Mr. Bernanke mentioned that this tapering off process would be addressed in the next few Fed meetings, the first of which takes place within a month.

What this means for prospective buyers is that now is the time to make the move into the housing market before interest rates begin their inevitable upward climb. The inventory of homes for sale is increasing, and with The Gracik Makinney Group’s local knowledge and professional expertise, we can help you find the home, and the mortgage, that you’ve always wanted. Give us a call at 630-567-5902 or stop by the office at 190 North York Road in Elmhurst.