WOW, what another week it has been for interest rates.
After seeing the Bankrate average overnight rate for a 30 year fixed mortgage sitting at 5.19% on Thursday morning I was wondering if this fast and furious climb would keep up the pace. Thankfully, they pulled back towards the end of the week but the climb we have seen over the past 6 weeks has been nothing short of dramatic. Not once have rates dropped during that span that has seen the rate go from 4.21% up to where we stand today at 5.07%. This week the rate shot up an additional 20 basis points from the 4.87% we enjoyed last week.
The benchmark 15 year fixed rate also increased significantly last week to 4.45% from 4.24% while the benchmark 5/1 adjustable rate mortgage moved to the upside to 3.8% from 3.53% the previous week. The cost of borrowing has been under increased pressure for the United States and we are seeing these increased costs hitting the mortgage markets.
The Fed announced last week that they intend to purchase $600,000,000,000.00 worth of longer-term Treasuries by then end of June, 2011 or about $75 billion worth each month. Originally the Fed told us the effect of these purchases would hold down rates so let’s see what happens when the buying transpires. I for one do not expect to see the rates we enjoyed over the past 7 months+/- to ever return in my lifetime.
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