Mar 03, 2013

Mortgage interest rates bottomed out in December, and now appear to be headed back-up.  Although the upward trend may not be abrupt, pressure continues for interest rates to rise.  

Throughout 2012, the Federal Reserve did a good job of managing the markets, to keep interest rates low.  In its Open Market Committee meeting yesterday (1/30/13), the Fed (FOMC) voted to maintain its low Federal Funds rates, and will continue buying treasury bonds and mortgage-backed securities as a stimulus to spur our national economic recovery.  This stimulus will only influence the markets so much, however, and the affect may only be short-lived.  Bottom line, volatility with interest rates is here to stay, and there will be more swings in the market in the months to come.  

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 February 1, 2013)

Rates As Of February 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'