New House

A New House

XECO/212
April 6, 2012


A New House
A new-fangled house is an important financial decision. Many factors need to be estimateed before beginning the process of purchasing a house. If all(prenominal) aspects of the purchase are not imageed, any mistake stern have dire financial consequences.
One thing to consider before purchasing a house is the current owe rate and the forecast of the mortgage evaluate in the come near future. Right now mortgage rates are at an all time low. With the mortgage rates at a low point, this means that the vendee go away spend little property in the presbyopic run. The mortgage rate testament not stay low for a very long time. The mortgage rates are pass judgment to rise again in the near future. In as little as a year from now, the average mortgage rate is expected to rise from 4.5% to an average of 5% (Yun, 2011).
The purchaser needs to consider governing agencies and their policies that will affect the housing market. The main government deputation to consider is the Federal Reserve. The Federal Reserve is the agency responsible for setting the rise and fall of interest rates and how much money is to be available to purchasers.



If less money is available to purchasers and people are not able to carry enough funds to purchase a house, the prices of houses will drop. On the contrary, if there is more money available the price of homes will rise to maximize profit for the seller.
In my opinion, the investment of acquire a house is a wise one considering the purchaser has made all the right research and has all the financial means to make the commitment to paying the mortgage.


Reference
Yun, L. (2011, October). Mortgage Rates. Retrieved from hypertext transfer protocol://economistsoutlook.blogs.realtor.org/2011/10/31/mortgage-rates/If you want to get a wide-cut essay, order it on our website: Orderessay



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