Interest rates set by the U.S. Federal Reserve have a great effect on most aspects of the economy, not only in our country but also in many other countries. They have been very low for a long time and the subject begins to appear in the headlines of major publications. They will stay as they are for some time, as they say or “?

The Expert

the experts give their opinions, some saying that interest rates will remain as they are for some time yet, according to the “flow of the global economy,” and others are not so sure about where they will go next and when. Both are plausible reasons for their statements, but at the lower end of the string, as mortgage borrowers are, we must look at things in a simpler way than resorting to complex financial knowledge.

A Simple Point of View

As I see it, when there are plenty of explanations for what is, in essence, very simple, known as supply-and demand law, start looking for a catch that could eventually make me feel like a idiot.

Current rates

The current interest rate the Federal Reserve have been as they are from 2003 and, in turn, lending rates have remained close, because everything is linked together and a hand blow in the Fed rate may leave Ordinary and many happy people in a terrible state of despair.

Global Issues

the U.S. as a country is engaged in the global economy, more than some U.S. citizens are happy, and when you make changes, the other suffers or takes effect on profits. International issues such as war, oil or a third world economy crash may have some impact on a leader and turn on its people.

Those who claim that rates will be stable for 5 to 7 years; I really do not know what happens unexpected international will retract what he said some time ago “

Why do this in?

Well, I specifically mean those who predict the course of events in the short or long term. Is “The rates will remain low, no worries”? Or, “They are forced to shoot, so be careful”? I think it is entirely right or wrong.

What I mean is that borrowers, especially mortgage borrowers, as they are long-term loans, should make every effort to be on the safe side and prefer fixed rate mortgages to adjustable. Those with adjustable mortgages dated before 2003 and have the option to change might do well to exchange a fixed rate mortgage, if they have not already done so.

The explanation

it is very simple: To paraphrase the old Limbo Rock, “how low can you go”, think of a drop of more? So, given that the housing market is in a safe and calm can keep consumer spending, which consider that this is a good time to invest in property?

Use a healthy mortgage and take advantage of current rates, while still low. And considering the low cost of ownership is a good alternative to using the equity in their houses devalued.