I was talking to our Mortgage person the other day and asked him what is going to happen this season with interest rates. It seems that interest rates may drop again this week but should start increasing here in the near future.

Conforming mortgage rates dropped last week, to their lowest level in months. It marked the 5th straight week mortgage rates dropped. This week, rates may drop again again. There are things to consider for example.

 Normally when there's inflation mortgage rates rise. This is because inflation devalues mortgage bonds, the underlying security on which mortgage rates are based.

Last week, the Federal Open Market Committee met and the group said inflation pressures were increasing, a signal that rates should increase.

To stop the economy from slipping back into recession the FOMC plans to keep its existing policies in place for the sometime.

OK, after reading this are you more confused now, before you read this blog?

Dealing with Asheville Real Estate and other markets like Weaverville, Maggie Valley and Waynesville Homes it would seem you are better buying now before interest rates increase. But then again we may see rates dropping again. So the best thing I could say to you is “I just do not know”.