After taking a one week breather, interest rates shot up again last week for the 3rd time in 4 weeks. During that span rates have increased about 12% from their all time lows last hit on November 7th. This week the Bankrate 30 year fixed mortgage starts at 4.71% an increase of 16 basis points from where we stood one week ago today. While rates have increased a full half point in just 4 weeks we still enjoy historically low numbers and it is now looking like the sub 5% money will not be here much longer.
The benchmark 15 year fixed rate also increased significantly last week to 4.07% from 3.92% while the benchmark 5/1 adjustable rate mortgage moved to the upside to 3.46% from 3.43% the previous week. We will continue to keep a very close eye on interest rates moving forward as any significant moves to the upside will affect our markets considerably.
As we have pointed out for the last few weeks, borrowers need to remember they can always refinance if rates move lower but long term they are probably moving up significantly from these levels. If you miss them here you may lament about what could have been; locking in money that was almost funny cheap.
Buyer’s who are watching these trends as well as excellent inventory levels should take this opportunity to get serious about locking in long term financing. Remember that only 30 times in the 25 year history of Bankrate has the 30 year rate dipped below 5.0%. What is interesting is those 30 times were all in the last 30 weeks. It really is a once in a lifetime chance to borrow long term money at give away prices.
A professional real estate agent watches these market trends very closely as the data is very important to our clients, whether they are buying or selling, to paint a picture of where the market may be heading. If you would like any additional information on a specific home, neighborhood, or community please feel free to contact me. I am easily reached at 561 308-0175 or via e-mail at firstname.lastname@example.org and would be happy to be of assistance. After just one call you will know why “Results Driven Real Estate” is your top choice for professional real estate services in Palm Beach and Martin Counties.
Always at Your Service,
Tom Priester e-PRO
”Results Driven Real Estate”
Keller Williams Realty