Interest Rate Changes Crazy Like a Yo-Yo

Perhaps the Fed should further cut their debt purchases

Down, up, down, up, down, up, down, up, down, up, down. One needs to see it to believe it but for 11 straight weeks the action in the interest rate market has been a yo-yo. I get a chuckle reading some articles in the press over the past week that real estate sales have been down and one of the reasons is rising interest rates.

Interest Rates

Thankfully real estate sales in our area have been red hot but if they were down I am not sure you could put much blame on interest rates. As of this morning the average overnight rate according to MarketRate sits at 4.24% down a full 8 basis points from where we stood a week ago.

Even more remarkable than the almost 3 month long yo-yo effect is the fact that rates this morning are at the lowest levels we have seen since November 3rd of last year. With the Fed’s Quantitative easing program being cut by 30 billion dollars a month just what is going on? This program was implemented to keep rates artificially low to boost the economic recovery. No doubt it was helpful but now that they have cut the purchasing program by over 35% rates have fallen. As John Prine sings it is indeed a big old goofy world.

We still remain unconvinced that interest rates can move much higher. After all each 1% move higher means an additional $170 billion dollar annual payment on our enormous debt. But interest rates are to blame for falling sales…….interesting and fun…..and goofy!

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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