Largest 1 Week Jump in Interest Rates Since February

What effect will the end of QE2 really have?




I really feel that the #1 metric for the continuation of what has been a very strong rebound in the south Florida real estate market is interest rates. They have now been below 5% for over a year, in fact almost 14 months have past when we reported breaking through that level on May 6, 2010. There have been a couple times when we jumped briefly above that mark but once again have seen a wonderful multi-month extended drop.

That was until this week. Nobody is talking about it, I have searched, but to me the end of the Fed’s Quantitative Easing program where they went on a 600 billion dollar buying spree is the main reason we saw a very significant jump in rates this week. Without the Fed buying our own Treasuries someone is going to have to step to the plate and the chances of them wanting more that 0.0025% interest are pretty good moving forward. Double digit weekly jumps across the board; as of Sunday the average overnight rate on a 30 year fixed mortgage jumped 13 basis points to 4.57% from 4.44% a week prior.

The benchmark 15 year fixed rate also increased by 11 basis points last week to 3.73% from 3.62% while the benchmark 5/1 adjustable rate mortgage moved jumped 16 basis points to 3.14% from 2.98% just seven days ago.

Other factors effecting rates this week were the Greek parliament approving measures that will allow them to receive additional rescue monies and further avoiding default. Some good news out of the housing market also put upward pressure on rates. Home prices rose for the first time in 8 months per the latest Case-Shiller Index. Pending home sales also jumped and marked the 1st year over year increase since April 2010. Keep your eyes open but look for more volatility in the coming weeks and while I am hoping for rates to be kept in check it is hard to say.

“Results Driven Real Estate” is dedicated to providing our readers the most timely information and analysis of the metrics affecting the real estate market. It is this passion for our business and our customers that makes dealing with us different; we care not about closing the deal but ensuring we are helping each client make the right decision based on their individual circumstances.  Again, if you are going to borrow money to purchase your home NOW is the time and I beg you not too wait too long. If we can be of help in any way just give Tom a call at 561 308-0175 or send an e-mail to tom@tompriester.com and we are most happy to serve you in any way that we can.

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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