Interest Rates Down for the 4th Straight Week to Another New Low


Interest Rates Hit Yet Again Another All Time Record Low

Interest rates continue to head lower which is great news for homebuyers and those who have not yet taken advantage of these once in a lifetime rates in a re-financing situation. However, the reasons for the downward pressure, slowing economic growth and worries about the future, are certainly not good news for the continued recovery of the real estate markets here in South Florid and elsewhere around the country.

As of yesterday morning, the average overnight rate for a fixed 30-year mortgage as reported by Bankrate.com was at 3.8% down 2 basis points from where we stood one week ago today. The benchmark 15 year fixed rate is at 3.04% down 2 basis points from last weeks level while the benchmark 5/1 adjustable rate mortgage remained unchanged at 2.71%.

Interest from investors in property in the area continues to gather steam and the number of bids and prices realized on new listings continue to amaze. Those with cash looking for what they consider a more solid, and safer, return that they can get elsewhere are snapping up everything that is thrown at them. Many are counting on inflation heading our way and real estate in the end will be a beneficiary to higher prices throughout the economy. Time will tell.

Treasury yields, especially on the 10 year bond which ois most closely tied to interest rates continue to ease bringing this continued downward pressure on mortgage rates. Last week marked the 4th straight week of declines bringing the rates on a 30 year fixed mortgage from just over 4% down to teh 3.8% where we stand today. Gross Domestic Product rose at an annualized rate of 2.2% so the good news is there is at least some growth but the numbers are disappointing. Couple this news with the unemployment rate which continues to be problematic and with th election heading our way one would not expect much change in the coming months.

Inventory levels for investment grade properties continue to be anemic……..

Advertisements

Published by

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?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s