Apr 11, 2013

Bond prices have been rising this past week and interest rates are dropping.

Short term interest rates are expected to drop as a result of the "sequester", and the coming spending cuts.  These spending cuts will affect our economy in numerous ways, most of which will be 'negative' in the short term.  Job losses, increased unemployment, and a drop in GDP, will create significant pressure for mortgage bond prices to rise (and interest rates to fall).  If a deal is reached in washington to stop the budget sequestration, then everything said here will change.  

A Side Note - The Fed's efforts to purchase mortgage bonds continues to act as a stimulus, and to help keep rates low.

The best advice for today's home buyers is not to take any unncessary risks with interest rates.  Protect yourself with a loan-lock or float-down option, if you can.  Remember..."rates can rise quickly, but tend to fall slowly."

Stay tuned for my next report.  (posted March 1, 2013)

Rates As Of March 1, 2013

 

6 month trends graph

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 us 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 quite a bargain!

View 'Market Trends Report'