TWIN FALLS, Idaho (KMVT/KSVT) – Interest rates are at a historic low, which means many people are thinking of making bigger purchases, such as homes or cars.
“Now would be a great time, if you are in the market to purchase a home, refinance a home, buy a new vehicle, and now would be a great time to do that,” said senior vice president, and director of mortgage and retail lending at First Federal Brenda Hughes.
Brett Buckley, the branch manager at Idaho Central Credit Union, tells KMVT why the interest rates are so low right now.
“There is a lot of different factors that play into what interest rates look like,” Buckley said. “With that said, this year we’ve had maybe the uncertainty of the coronavirus crisis, and so the government through the United States Federal Reserve has moved to lower rates in order to stimulate the economy.”
It’s hard to say whether the interest rates will stay this low for long, Buckley said.
“Of course I don’t have a crystal ball, so I don’t know that for sure, but it feels like, the situation we are in in the country right now, I don’t know that it’s going to increase rates any time soon, but we don’t know that for sure,” Buckley said.
Because the interest rates are so low, many people are looking to buy a home, causing the demand for houses to be greater than the supply. Many others are looking to refinance their mortgage.
“We are actually experiencing record volumes right now we have recast our budget for the year,” Hughs said. “And again we are like the rest of the market and the rest of the industry, trying to manage capacity, because we are experiencing record volume in both purchase and refinance transactions.”
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