We can’t get through the end of the year without more drama coming from Washington and there more financial market drama. The talk of the Fiscal Cliff has put shock waves in the markets and caused much uncertainty. Whenever there is financial uncertainty rates start to spike almost uncontrollable up or down. The low rates that we have all enjoyed have really help spearhead our countries way back from the Great Recession.
Our housing market is one of the pillars to our economy. Housing is a huge industry employing many people and the stronger it is the more people are working. Some are afraid that there may be job layoffs if the mortgage market slows down. House values may also take a plunge if higher rates force potential homeowners to stop buying. This affects our countries overall wealth because as we all know one of the best way to build wealth is to buy a house. If our home prices go down as well that could really hurt the consumers overall outlook toward the economy which is dangerous. There are already signs all this Fiscal Cliff talk may be slowing the housing market.
All experst seem to agree that the Fiscal Cliff will have some type of impact on rates. What that impact will be is still be studied. Keep vigilant if you are in the middle of a home loan. Don’t allow your interest rate to go up and not be propared.