Over the last 18 months, interest rates have taken a hard hike higher evaporating the dreams of many. The question is asked, when will interest rates decline? There are some indicators to give everyone some ideas.

In an effort to address the inflation problems, the Federal Reserve has been on a march to higher interest rates. This powerful counter action over the last year has had unintended consequences and has lead to a housing deficit. It is impacting millions across the country and will take a generation to resolve unless the Federal Reserve takes some counter actions.

The housing market has been going through a substantial reset in most parts of the country over the last year. With interest rates high, is this a good time to purchase a home?

The housing market in many parts of the country is really hot. Home values have increased at levels never before seen. Interest rates have also increased, raising the borrowing costs for those looking to purchase a new home. The principal and interest payments have increased an alarming 14% in the last 12 months.

Interest rates have dropped further over the last few weeks to all-time lows to the surprise of many. As a result, home purchasing power for many prospective home buyers has increased substantially since the beginning of 2020. This is one positive from the market chaos created from the coronavirus.

What a week for interest rates! Rates have taken a wild ride lower over the last several months. This week however, rates have broken through new lows. The 10 year treasury bond hit historical lows on Friday, February 28 at 1.13%. This historical rate drop gives a generational opportunity for many homeowners to lower their monthly payments. What opportunity is there for consumers? Let’s take a look.