Interest Rates Hit 120 Week High


Interest Rates are Getting Interesting, Very Interesting….

Untitled

The average overnight rate on a 30 year fixed mortgage jumped another 9 basis points this week to 4.61% and the highest level we have seen since the week of May 8, 2011.

It has been five years since the Fed began it’s quantitative easing program designed specifically to hold interest rates at artificially low levels to help the economy get back on it’s feet. The party appears to be over as all signs point to a pullback in the current quantitative easing program starting next month. Nothing dramatic right off the bat but most expect the current $85 billion in monthly purchases will be trimmed to $70 billion in September and stepped down periodically through June when the program would end.

It is pretty straight forward that if the Fed does end the program by June we should expect interests rates to return to more historical “normal” levels by that time. Where that may be is a matter of conjecture but one would assume they certainly will rise to at least 6%. The last time we saw rates above 10% was back in February of 1990 and we can hope that is not the direction we are headed…….

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