2 years ago you could still get a 3% mortgage. Now you’ll be lucky to get one at 6.5%.
Are current rates the new normal or just temporary and what does that mean if you need to borrow money?
Crystal ball warning! All the disclosures when making decisions gazing into a crystal ball apply here.
This strategy is predicated on predicting a future that hasn’t played out yet.
With that said, if you need to borrow money – aka mortgage, car loan, home equity, etc. – you’ll probably be better off waiting until next year.
See if you squeeze a few more miles out of your car.
Don’t move for another half a year or so.
Wait until summer for that loan to install solar panels.
Why?
The Fed has indicated and most economists agree that rates will not stay where they currently are.
The Fed hiked rates faster than anytime in history to hit the brakes on inflation.
To confuse analogies – once we reach our cruising altitude rates will not just level off but start to come down.
So if you can wait to borrow money for another 6-12 months, you’ll probably lock in a lower interest rate than you can now.
