2013 Interest Rate Forecast - What does 2013 have in store for interest rates on mortgages? Experts are saying the year has a mix of different factors to consider– both in the long and short term.
2013 Interest Rate Forecast
Writes Bill Conerly at Forbes, “…short-term interest rates will remain in microscopic territory through 2013. Less certain is the outlook for long-term interest rates, most likely a story of rising yields.”
Many people are worried that while interest rates remain low throughout 2013, in the long run they will become victim to inflation. Here’s the thing– the Federal Reserve may be keeping interest rates low because of the current state of the economy. They want encourage people to spend and keep the big wheel turning. However, history has shown that this borrowing of “cheap money” does lead to more people spending which in turn leads to prices GOING UP. Then you have high, inflated prices and people with a lot of debt and no real money to pay the prices nor their loans.
Still, the Federal Reserve has not increased interest rates since July 2012– and they don’t seem to be planning on doing so throughout the rest of 2013 either. Now is the time for people to act while interest rates are low.
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