Is now a good time to borrow against our home or should we wait to see if the interest rates will change?
Answers | 2
Long term rates (mortgages) are expected to rise later this year or into 2016 but it all depends on the Feds, world markets and the mortgage backed securities market.. The Feds are expected to raise rates about .25% later this year and that will take credit card rates up as well as home equity lines of credit, which are normally tied to the Prime Rate. So if you are looking to get a HELOC then act now as those rates will go up soon, but if it does go up .25% then the Prime rate goes to 3.50%, hardly anything to sweat about. But the Feds could continue to raise rates if the economy is heating up (inflation etc...) so expect those HELOC's to go up whenever the Feds raise rates. Nothing is guaranteed, but the consensus is that rates will increase in the near future.
The answer to your question really depends more on your circumstances than current mortgage rates. If you want the funds for an urgent need, there's certainly no advantage to waiting. Long term rates for ideal borrowers have pivoted around 4% for the bulk of 2015, which is certainly attractive for most borrowers. If you need the loan, there is no advantage in postponing it, as it's certainly possible rates will rise from their current levels.