Interest Rates Continue to Amaze

Back down to 27 week lows

The Fed keeps cutting back on their monthly quantitative easing purchases of United States debt. And interest rates keep going lower. Go figure. Monthly purchases have been slashed by $40 billion dollars a month on a program designed to artificially keep interest rates at unheard of levels. Funny money levels. If something is put in place to lower interest rates and then is removed rates should go up. Shouldn’t they?

Interest

But as of this morning the average overnight rate on a 30 year fixed conforming loan sits at 4.21%. The most favorable rate borrowers have seen since November 3rd of last year. Almost two months before the Fed made the first cut in monthly debt purchases which then stood at $85 billion dollars per month.

The Fed is cutting back because they state the economy is steadily healing. Not sure how steady it is with rates falling but let’s roll with it. National numbers released by CoreLogic state that weak sales have begun to restrain the housing markets sharp price gains. They show that nationally prices rose 11.1% year over year as of April 1st compared with a 12.2% year over year gain as of February 1st.

Locally the northern Palm Beach County numbers were quite different during this time span with the median single family home price up 4.2% year over year as of April 1st compared with 5.1% year over year as of February 1st. Locally condominium numbers were up 7.5% in April and 8.7% in February so we are also seeing the same trends here in the Jupiter/Palm Beach Gardens area.

While national reporting tends to be delayed we can report that locally as of May 1st single family home prices were up only 1.6% over last years’ numbers. Time will tell if that trend also plays out nationally and keeps interest rates sliding lower no matter what the Fed does.

My big question is, who is stepping up to the plate each month writing $40 billion dollar checks for US bonds to take over for the Fed purchases. 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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