Interest Rates In The United States
Interest rates in the United States are at an all-time low. This in terms makes mortgage rates very low, making it a great time if you are in the market for a new home. The reason for the low interest rates are that Ben Bernanke and the rest of those that deal with interest rates believe that raising the Fed Funds rate will increase savings and hurt the stock market. However, interest rates are still so low that investors will still believe they are better going into the markets rather than saving. Bernanke has already stated that he expects rates to stay unchanged into 2013.
In my opinion, the Fed should slowly start to raise rates starting in 2013. A quarter of a percent twice a year for 4 years. After this, the Fed can analyze the situation and see whether or not to keep rates where they are or to raise or lower them. This will give people a real option of saving at that time, rather than having to invest in the stock market.
The one thing that is nice is that I currently have a car loans are generally less than 3%. Mortgage rates are under 4% for a 30 year mortgage, even under 3% for a 15 year mortgage. I hope that it stays this way for 2 more years.