Benefits Of Lower Interest Rates

In the United States along with the rest of the world, everybody is having hard times. For a person that is looking to build or to buy a new home there is an advantage that can be taken. Building supply costs are now remaining steady, there are great deals on land, and there are excellent interest rates. Make sure that you are not wasting any of your time by waiting for the interest rates to go lower then they are, this is because the federal government may not be looking to reduce the rates soon, and the next change could be the interest rates going up.

As for the past five years home building had been an expense that was high, this had been because the lumber prices had been up. This increase now seems to be now over and the price of lumber is now beginning to drop. So any family that is seeking to build a new fancier home can now afford to do so and it will be cheaper then in previous years.

All over the United States land is now becoming more affordable. Real estate agents are looking to make money and to do this they need to make the land move, not sit for months on end at a higher price. Buyers need to take a full advantage of this economic hard time and buy the piece of land that they want to build their dream home on.

The lower interest rates are the main thing that a home builder or a home buyer should be looking at right now. Any person that wants to build a new home from any plan needs to be quick moving to secure the interest rates getting lower. Many banks are now offering interest rates that are getting lower this makes the home builder or the buyers dreams come true.

Lower interest rates are essential. So, you shouldn’t let go of any opportunity when they are really low.

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Are Interest Rates Going To Go Up Anytime Soon?

It can be a bit discouraging if you are trying to find the best rates on CDs right now. The rates are some of the lowest in years and that can make it hard to make money off interest. The interest rates will probably stay low through 2010 due to the economy not being very strong and seeming to be stuck as is for the foreseeable future.

Being in a position of counting on interest income right now is a dangerous place to be. In order to gain any return you must be in a position to accept risk. However, with the economy the way it is, now is not the time to be taking financial risks.

The best interest rates aren’t much more than a couple of percent and when you do the math it seems like almost a waste of time, especially when you are going to have to pay taxes on any interest income you do earn. With the economy being so poor right now, everyone is struggling to make a dollar wherever they can but until interest rates start to rise, your investments will be on the sidelines just like everything else

you already own a CD and let it rollover at it’s maturity, you will simply continue to earn whatever interest is on your investment. However did you know that unless you walk into the bank and personally instruct them to do so, most banks will not give you the highest available CD rates? Many people have chosen CD’s because next to cash it is the safest way to hold on to your money. Although you want the security of a CD, you also want the best rate you can get, especially at this time.

It can be difficult to make a decision regarding investing your hard earned savings. The safest way to protect your money is through bank CD’s and treasury bills that are covered by FDIC insurance. But if safety of your savings means committing to a CD and earning little or no interest income, then you are basically stuck with losing money to simple inflation. With the low interest rates, many people are torn between taking risks they can’t afford or taking stocks that earn them nearly nothing through interest investing.

Take a look at my website if you are looking for more information about the best money market interest rates. You might also be wondering will interest rates go up any time soon?

Mortgage rates are up, but are they too high?

interest-rates Anyone who has been home shopping over the last month knows that mortgage rates have been going up. A month ago the national average for a 30 year fixed conventional loan was close to 4.8% while today it is closer to 5.65%. So mortgage rates have jumped up, but is that to high to consider purchasing now?

While we may have been spoiled by those sub 5% rates over the last month, in no way is that indicative of what we should be expecting for interest rates. We won’t even go back to 1979 and 1980 when interest rates were close to 20%, we will just look at the rates from 1987. 

  • From 1987-1990 each year the average 30-year mortgage run above 10%
  • From 1991-2000 the average 30-year fixed mortgage ran 7.9%, and only once was it below 7.3%, that was in 1998 when it was 6.94%.
  • From 2001-2007 the lowest average rate for a year was in 2003 when the average rage was 5.83%.

So as you can see from recent history if a lender tells you they can lock you in at 5.7% it may seem high compared to what you saw on the news over the last few months, but historically we are still talking about low interest rates.