If you’re thinking about buying a new home, the time to buy is now. Interest rates could rise in the coming months, possibly as soon as mid September. That is when the Federal Reserve has its next policy meeting and could make a key decision to raise rates.
The key indicator of whether interest rates will increase is tied to how well the job market performs. The benchmark low interest rate has remained near zero since late 2008. The idea was to help increase employment and revive the economy. Rates remained low in light of a sluggish economy but moving to a higher interest rate usually signals movement towards a healthy economy.
The Fed could still hold off a little longer on raising rates, possibly pushing off a hike until December. However, some top experts warn waiting too long could also produce additional problems. The last time the Fed began rate increases was 2004 and it could be a long time before interest rates hit the current lows again.
With this in mind, if you are hoping to buy, you need to move fast. The next month or so could be the best time to finance a new Chicago home, getting the most for your money with extremely low interest rates.