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