Low interest rates are good for homeowners because they lower their monthly mortgage payments. Interest rates are so low in large part because the economy is so weak.

Interest rates are expected to stay low for years as the economy battles the coronavirus pandemic, according to Federal Reserve Chairman Jerome Powell. He was quoted as saying, “We think the economy is going to need low interest rates, which support economic activity for an extended period of time – this will be measured in years. However long it takes, we’ll be there, we’re not going to prematurely withdraw the support we think the economy needs.

It looks like buyers will have access to low rates for years to come … maybe not as low as they are now, but historically very low.

Kathleen Daly, Coldwell banker, 415-519-6074, kdaly@cbnorcal.com; Lisa Lange, Coldwell Banker, 415-847-7770, lisalange@coldwellbanker.com.

A: While economists cannot predict a crisis of this magnitude, they can advise governments on how to calibrate macroeconomic indicators for a steady recovery. The Federal Reserve is committed to supporting the economic recovery and signaled to keep rates close to zero until 2023.

This is a necessary measure until there is evidence of a lower employment rate and inflation of at least 2%.

The last time the Fed raised interest rates after keeping them near zero for seven years was in 2015. It was a necessary intervention after the 2009 housing crisis.

In real estate, this translates into advantageous mortgage interest rates of less than 3%. A slight increase expected by the start of next year. Lawrence Yun, chief economist of the NAR, estimates that mortgage rates will rise to 3% by the end of the year and 3.1% in 2021 but will remain stable over the next few years.

Alina Aeby, Boussole, 415-744-4844, alina.aeby@compass.com.

A: The Federal Reserve usually lowers interest rates in order to stimulate the economy.

When interest rates are low, larger purchases such as homes and cars are considered more affordable. People feel more comfortable buying these “bigger” items because they have a very attractive (low) interest rate until the loan is paid off.

Since the onset of COVID-19 and shelter-in-place orders began in March, we’ve seen many people take advantage of these historically low rates and finance the purchase of new homes or refinance their existing mortgages.

If you haven’t taken advantage of these low rates, I suggest you contact your lender and start the process, you’ll be glad you did.

Matt Heafey, the Grubb Co., 510 541-1754, heafey@grubbco.com.