30 Year Fixed Mortgages Remain at Record 3.85%


Interest Rates Remain “Stuck” at Record Low

Amazing how cheap money is these days and those buyers able to qualify and those who haven’t refinanced are negotiating some fantastic bargains. Keep in mind that we have never had rates this low in the half century plus that long-term mortgages have been around. While the chances of any significant further declines in property values are slim some buyers are still fence sitting but it is hard to figure out why. Keep in mind that historically real estate in the United States during the post war era have increased in value an average of 4% annually we now have prices that are 20% below these historical trends. Never has been the timing been better to find your dream home, borrow as much as you can, and stay put for 10 to 15 years or longer. Those able to find the ideal abode and live happily ever after for the term of a 30 year fixed mortgage will never be sorry at today’s prices and rates. This truly is the perfect storm in the south Florid real estate market if there ever has been one.

As of this morning, the average overnight rate for a fixed 30-year mortgage as reported by Bankrate.com is at 3.85% down 4 basis points from where we stood seven days ago. This marks the 10th week out of the past 14 where rates have either dropped or stayed flat and ties the record all time record low for 30 year fixed notes set just two weeks ago. The benchmark 15 year fixed rate was at 3.14% down 7 basis points from last weeks level while the benchmark 5/1 adjustable rate mortgage dropped 4 basis points to 2.84% from 2.88% where they stood 7 days ago. While rates at historic levels there is certainly the chance with the worldwide economic turmoil for investors to continue their love affair with US bonds and rates could dip even lower. However any significant decrease seems very unlikely unless banks decide they do not need to profit from their cost of borrowing and servicing loans.

We continue to see some growth in Gross Domestic Product, interest rates remain at record low levels and recently some positive growth in employment. All good news for the south Florida real estate market but can we keep the recovery underway is the big question.

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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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