October 20, 2021
Markets

Will the days of sub-3% mortgage rates soon be behind us? One expert thinks so

Mortgage rates are holding steady, but one expert says the days of sub-3% interest rates could be over.  (iStock)

Average rates for a 30-year mortgage increased slightly last week, still lingering below 3% – but one expert says that sub-3% mortgage rates could soon be a thing of the past.

The Federal Reserve announced at its September meeting that it was keeping the federal funds rate at 0%, but it could begin raising rates as early as next year. 

“The Fed also clarified that it will begin tapering its $120 billion a month in Treasury and mortgage-backed securities purchases, signaling that it views the economic outlook with guarded optimism,” said George Ratiu, Realtor.com manager of economic research. “Markets are likely to price in expected tapering as indications of a timeline crystallize, which means that the days of sub-3% mortgage rates may be in the rearview mirror…

Read full article here: www.foxbusiness.com