No rate change for now: what it means for mortgage rates

Mortgage rates are lower than ever in 2016 and the Federal Reserve’s recent decision to leave the key rate at 0.5% will likely mean mortgage rates won’t change dramatically in the coming year.

According to Nerdwallet, the latest rate decision will guarantee a slow increase in mortgage rates over the rest of the year with gradual increases over the next couple of years.

Federal Reserve chair Janet Yellen has promised higher rates in the near future, so another rate hike is guaranteed before the year is up. What does that mean for you? It’s probably a good time to think about locking in your rate or going with a fixed rate mortgage. While rates continue to be at all time lows, the truth of the matter is that there is nowhere for rates to go but up. Thankfully you have lots of time before there’s any significant increase in the average rates, but it’s best to lock in now.