Higher is Winning the Interest Rate Tug of War

The up/down trend continues for the 8th week

Interest rates on a 30 year fixed conforming loan moved higher this week with the average overnight rate reported by Bankrate sitting at 4.44%. This is after an eleven point move over the past week and brings rates up to the highest levels we have seen since back on January 12th.

Interest

We live in a crazy world and the fact that rates are still sitting at these levels is puzzling. The Fed has slashed their monthly debt purchases by 35 billion dollars and rates really have not moved anywhere. For 8 straight weeks rates have not moved in one direction for two consecutive weeks. Up. Down. Up. Down. Up. Down. However one has to question if next week might break the trend and start pushing rates back to new 3 year highs.

When the Fed started to “taper” their monthly purchases in was widely expected that rates would rise. But they have not. Not yet. And I will continue to ask, how can they go much higher without pushing the United States into insolvency? One thing is for sure rates are still historically very low and home buyers should focus on buying a home that will fit their needs for the long term and lock in a 30 year fixed rate. In all likelihood one day they will look back and say that was a wise decision. Always interesting, always fun.

Fins up………

Tom Priester
Principal Broker

Paradise Sharks Real Estate
Direct Line 561 308-0175
tom@tompriester.com

http://www.paradisesharks.com

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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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