The “see-saw” on interest rates continue.
For the 7th straight week the tug of war on interest rates goes back and forth. Up one week, down the next and it has been that way since the beginning of February. No direction as the Fed has reduced their debt purchases by 30 billion dollars a month but the wreck that is the world economy has people still buying the “safe” American bond instruments.
It is still our belief that interest rates cannot go that far north from these levels as there is just no way we can pay the interest on out debt if rates go much higher. And there is no doubt there is not a much more significant factor to the real estate market than the cost of money. We continue to monitor rates but the up and down, up and down, up and down is getting downright comical.
Today the average overnight rate on a conforming 30 year mortgage according to Bankrate sits at 4.33% down 9 basis points from week ago numbers. If I was a betting man I would say rates will be up this week but betting on something that makes as little sense as interest rates do these days would be a big gamble. Always interesting, always fun.
Paradise Sharks Real Estate
Direct Line 561 308-0175