Interest Rates Move Higher After Fed Announcement

30 year conventional rates higher by 13 basis points

The Fed appears to be in turmoil with a divergence of views on what to do in order to head off a potentially catastrophic financial disaster. Janis Yellen may be wondering why she wanted this job and she might be wondering that for the foreseeable future.

Interest Rates

One thing is for sure, there is some obvious tension between Fed board members on what is the right course of action moving forward. Do they reduce their rein on interest rates and allow for some higher unemployment; one member says no as he argues these low interest rates could be “stoking financial instability”. Other members want the Fed to keep buying our debt to keep rates down until unemployment reaches a “healthy” 5.5%.

What we do know is on Wednesday they announced that they would further reduce their monthly debt purchases. This is the 3rd reduction since the first of the year and now lowers their monthly purchases a total of 30 billion to 55 billion each month. This news sent the markets into turmoil but Wall Street quickly recovered. Bonds didn’t and the average overnight rate on a 30 year conventional mortgage sits at 4.42% up from 4.29% a week ago. These are now the highest rates we have seen since January 19th. Always interesting, always fun.

Fins up……..

Tom Priester
Principal Broker

Paradise Sharks Real Estate
Direct Line 561 308-0175


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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… 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 You can always pay more and receive less but that just would not make any sense. Would it?

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