of QE3…I’m not so sure. The government shutdown could keep interest rates low for a while. It’s possible. For 3 or 4 months before the shutdown interest rates were steadily climbing. Why, because the talk around Wall St. was the Fed is going to start tapering Quantitative Easing – QE3. The mere mention of it by the fed sent interest rates soaring almost a full percentage point in only 2 weeks. Everyone in the know believes once the FED starts to reduce their bond buying program (QE3), which artificially has been keeping rates low, rates will rise. It’s inevitable and it was looking like it was going to be sooner than later.
Fast forward to today. The government shutdown may have extended that inevitable tapering as far out as late 2014 according to some experts. This shutdown is costing the economy 160,000 million per day. It’s hitting the stock market hard and could take months if not a year to recover from the negative effects. This could stall the progress our economy was making and would make a case for continued QE. It doesn’t look like the Fed will be tapering any time soon, especially if this shutdown continues for an extended time period.
Rates are currently in the low 4’s for 30 year fixed loans. Low 3’s for 15 year fixed loans. This means that many will be able to take advantage of HARP loans and save some money by refinancing. It doesn’t matter of your in Columbia, Charleston, Lexington, or Beaufort you can take advantage of the HARP loan program even if your underwater. More people qualify for better rates today than they did just last week.
Keep in mind these ultra low rates will likely increase once the government shutdown ends so act fast if you’re considering a refinance or if your purchasing a home now would be a good time to lock in your interest rate. If you have questions or need more information on HARP and other programs that can help South Carolina Residents, please call Coastlend Mortgage at 843-388-5763 or email Eddie@coastlendmortgage.com