Thursday June 21, 2013
Stock markets are dropping after Federal Reserve Chairman Ben Bernanke says the central bank will likely slow its stimulus with what he calls an improving economy.
Interest rates for purchasing houses, cars and anything else are creeping up now.
But ABC business correspondent reminds us to keep perspective reminding us those rates have been at historic low levels. Jarvis says, "Compare what you're paying on a mortgage today compared to what you would have paid in 1985. In 1985 a 30 year fixed rate was mortgage 12.3%."
Wichita State University's director for the Center for Economic Development and Business Research, Jeremy Hill says this is still a good time for financing a purchase. Hill says, "Rates are so low that you should do it now before you wait for the economy to really pick up. Interest rates, in general, for buying a home, investing in something locally, this is the perfect time to do that, right now."
He says that could change several months from now if the economy improves and the federal reserve slows or stops its purchasing of bonds in its economic stimulus program referred to as quantitative easing.