Another New Record All Time Low For Interest Rates


Interest rates down to 3.40% on 30 year fixed mortgage

For the seventh straight week interest rates refused to change their downward trend and we find ourselves this morning at a brand new all time low. Plenty of qualified buyers out there in south Florida fighting the daily scramble for any new inventory that meets their need and priced well with condition to match. The problem is no matter how low rates go it does not change the stranglehold that inventory concerns have on the market.

There is no doubt as rates continue to move south it opens the door to a multitude of home owners ready to re-finance and once again lower their monthly housing payments. It is not unusual to find borrowers who have refinance two or three times in a relatively short period of time.

As of Sunday, the average overnight rate for a fixed 30-year mortgage as reported by Bankrate.com was at 3.40% down another 1 basis point from where we stood the previous week and another all time record low. While this was the 7th straight week of declines in loan rates one could assume further declines may be heading our way. The benchmark 15 year fixed rate was at 2.82% down 3 basis points from the previous weeks level while the benchmark 5/1 adjustable rate mortgage remained unchanged at 2.95%.

The Mortgage Bankers Association reported last week that these new low rates once again led to a significant surge in re-financing activity. In fact, their weekly survey showed that mortgage applications jumped 16.6% in one week to their highest level in 3 years. This should be fantastic news for the local real estate markets but when you did into the numbers we find that 83% of all application were for re-financing purposes and not new loans. So lenders are busy and loan approvals for new purchases are taking longer pushing some closings out 45 days or even longer.

The FED’s new QE3 stimulus has no end date to their large monthly purchases of mortgage backed securities but some project this may be nothing more that election year shenanigans and feel while rates probably will not do much between now and November all bets are off once we find out who will be living in the White House for the next 4 years. Most feel that rates cannot go much lower but there are other viewpoints that say the new Quantitative Easing measures could keep downward pressure on rates as long as these monthly purchase continue and keep downward pressure on treasury yields. Historically the 10 year treasury note is closely tied to the rates on 30 year fixed mortgages.

One thing is certain; historically speaking it is a wonderful time to be locking in long term financing…….

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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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