After Dropping for 8 Straight Weeks Interest Rates Move Higher


Biggest One Week Increase Since December 8th

We have to go all the way back to December 29th before finding another week where the average overnight interest rate on a fixed 30 year conforming loan moved higher. As of this morning the BankRate quotation is 4.35% up 8 basis points over the past week which erases all of the decline we have enjoyed over the past 4 weeks.

Interest Rates

The big news this week was Wednesday’s release of minutes from the Fed’s January meeting and the plan for additional reductions in their monthly debt purchase program. In Ben Bernanke’s last meeting it was agreed purchases would be trimmed another 10 billion per month although the timing for this additional reduction was unclear. The news pushed stocks lower and interest rates higher.

The minutes specifically state they recognize home buying has slowed and one wonders how much the recent two month slide in rates has impacted the first increase locally in pending home sales in over 9 months. Interest rates have moved rather significantly since last April when the Fed initially hinted at the tapering which started on January 1st. For now we should keep a close eye on interest rates and further Fed actions as perhaps no single metric has as much impact on how the real estate market, both locally and nationally, performs moving forward. Always interesting, always fun.

Fins up……………….

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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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