Aug 31, 2013

- originally posted August 1, 2013 -

Interest rates have been relatively stable since the 4th of July holiday, but that may not last.  August could prove to be extremely volatile with a variety of economic data soon to be released, that may drive mortgage rates up.  Everyday, financial investors look to the markets for signs of optimism or pessimissim, and they place their bets accordingly.  The underlying consensus among most investors is that there's continuing weaknesses in the jobs market, which should put significant pressure on interest rates to stay steady, or decline.  But, that's not how the markets are responding right now, which has everyone guessing.  Federal regulators (the FED) also beleives the economy is weak, so they are not going to change their policy that allows rates to rise "easily."  

Although we've experienced some modest increases in mortgage interest rates during the past 60 days, home buyers should continue to benefit from reasonably low rates for a few more years.  Rates will bobble and may even rise above some home buyers' comfort zones, but any upward movement shouldn't be too drastic.  Hopefully things we stay on an even keel and most of us will be happy.

Here's a helpful article that I recently noticed in the Wall Street Journal, that I recommend you read.  Just the title alone, offers a glimpse of what federal regulators think about the monthly reporting of our unemployment rate data, and how they're trying very hard not to be reactionary.

Till next month,

Interest Rates As Of August 1, 2013

6-month trends graph - as of August 1st, 2013

 

 

 

 

Interest Rate Advice

The long term expectation is for interest rates to rise. Don't take these low rates for granted. If you're financing a home right now, my best advice is to "lock-in" these low rates, rather than gamble that they'll be lower as you get closer to your closing date. Better be safe, than sorry!

If you're in the market for a home this year, allow me to help you find the right lender and loan program, and help you take advantage of these great low interest rates. Today’s interest rates are still quite a bargain!