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January 2014 Mortgage Interest Rates
- originally posted January 1, 2014 -
A continuing slide in mortgage bonds has led to increases in interest rates over the last 30 days. This was largely the result of unemployment numbers that were reported to be better than anticipated. Odd thing though, its almost as if the economy didn't miss a step during the political upheaval in Washington in recent months. Investors have moved on, and they're placing their bets on new data.
That big announcement made by the Fed in December, revealed that they'll be reducing their stimulus for bond purchases. Although the Fed is still trying to keep mortgage interest rates low, they're walking a tight rope while remaining committed to boosting the economy. Here's a very good article about the recent Fed taper.
Overall, the Fed's decision was pretty good news for the stock and bond markets. Investors relaxed knowing there would be little suspense about what the Fed will do with its economic policy. Perhaps now, the markets can begin to settle down. That may be wishful thinking, though. Volatility in the markets makes money for savvy investors, and sadly, stability does not.
Home buyers should prepare to see more volatility with interest rates headed into the new year. Buyers should "lock" their loan rates whenever possible.
Till next month,
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!
Michael Dagner is a real estate professional in Denver, Colorado.
The Michael Dagner Group, Brokers Guild Cherry Creek Ltd, 7995 E. Hampden Ave, Ste 100, Denver, CO 80231 Map
5 Minutes From The Denver Tech Center - Near Tamarac Square, 9-Mile Station, & Cherry Creek Reservoir
(303) 514-4000
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