Interest Rates Hit New 129 Week High

Yield on 10 Year Treasury Bonds Hit 3%

Interest Rates

Last week while everyone’s attention was focused on Santa Clause it may actually be the Grinch we should have been paying attention to. As of this morning the average overnight rate of a 30 year fixed conforming mortgage sits at 4.56% up 4 basis points from where we stood a week ago. While not a huge jump it was enough to push this number higher than we have seen since june 10th of 2011.

Next week the Fed starts their announced pullback on purchases or our debt from 85 billion per month to 75 billion and it has yet to be determined what future effect this will have on rates. What is clear is the Fed, who has amassed over 3 trillion dollars of our debt through the various quantitative easing programs in place over the 5 years, has left a gap that another investor will now have fill and presumably will want a higher return.

I still do not see how they can let rates move much higher as the interest on our national debt at some point becomes “unpayable”. What we do know is the yield on the 10 year treasury to which interest rates are closely tied hit 3% for the first time in over two years but did pull back on a disappointing jobs report.

Rates are still vary favorable, but how long they will stay there, that is the question.

Fins Up………………

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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?

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