Interest Rates Make Another Move to the Upside

Interest rates up for the 3rd Week in a Row




Interest rates increased again last week but still remain very low and the market remains perfect for buyers and those who still have not taken this historical opportunity to refinance. As of Sunday the average overnight rate, as reported by Bankrate.com, for a 30 year fixed rate sits at 4.90% up 6 basis points from the 4.84% we were at last week. Remember this is the average overnight rate and those with good credit will still be able to lock in rates below these averages. The overall sentiment is for rates to be increasing and these increases could be significant. No doubt the government wants to get out of the loan business and timing is the question but there is no doubt we could see rates increase tremendously from these historically low levels at some point in the not too distant future. Most concede there is only one way for rates to go from here and that is up, up, up. The big question is how fast and how high. So far the market is bucking this trend and it will be very interesting to see how long this amazing interest rate climate will continue.

The benchmark 15 year fixed rate also increased 5 basis points last week to 4.10% from 4.05% while the benchmark 5/1 adjustable rate mortgage also made a move to the upside to 3.50% from 3.47% the previous week. 

While we are still hovering below 5% I don’t think a slight increase in rates, say to 5.5% will have any dramatic effect on the real estate market. If we see rates eventually reach 6% it may price many first time home buyers out of the market. The Fed seems to be ignoring inflationary signs that are all around us; at the gas pump and the grocery store in particular but are holding steady so far.

We take great pride here at “Results Driven Real Estate” in providing our clients the very highest level of service available in the industry. If we can be of assistance in any way with questions you may have about your real estate goals please feel free to contact me at your convenience for a complimentary consultation.


Always at Your Service,

Tom Priester  e-PRO
“Results Driven Real Estate”

Keller Williams Realty
561 308-0175
tom@tompriester.com

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Tom Priester

After spending years among the top individual performers at one of Palm Beach County’s largest and most successful real estate brokerages, Tom Priester knew there was another way to do real estate. A better way. Real estate services focused on the customer. Like the old days when the customer truly was #1. He tired of listening to why he should be going out to have his customers sign one sided buyers’ brokerage agreements. He tired of hearing how he should be selling customers why paying higher commissions, like 7% and 8%, was to their benefit. He tired of hearing how he should sell his clients on why they should be paying hundreds of dollars in additional “transaction fees”. The business had slid way too far from being focused on the customer. His customer. So he decided the time was right to be different…..by design. To start his own unique boutique real estate firm truly focused on his customers. They will now have access to a process focused on them. Only the best marketing techniques to sell their homes. No cutting corners. Commission structures based on his clients needs not his. Paradise Sharks was born out of Tom’s passion to return this business to the customer. Where it belongs. If you want a real estate experience that benefits you, just give Tom a call at 561 308-0175 or send him an e-mail at tom@paradisesharks.com. You can always pay more and receive less but that just would not make any sense. Would it?

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