about the recent spike in mortgage interest rates. David has always provided some sound advice and updates on how the current real estate and finance markets are doing. This is what he had to say:
Mortgage rates took a big jump yesterday as investors looking at the United States Government’s efforts to sell nearly $2 TRILLION
in U.S. Treasury bonds this year to fund its various Stimulus programs decided that the risk of inflation and rising interest rates were too high at the current record low yields.
In addition, signs of a recovery in the United States and globally are prompting some investors to lighten their holdings in U.S. Treasuries in search of other opportunities with greater potential returns.
Mortgage rates jumped from 0.25% to 0.75% as banks and lenders tried to figure out what was a reasonable rate to charge for mortgages in this new climate of potentially rising interest rates.
For potential home buyers and those considering a refinance, it would be strongly advised to double check with your lender to see if your rate was locked prior to Wednesday – and if not – what the new rate is going to be.
After a period of relative calm in the interest rate markets, it looks like there could be some turbulence ahead so make sure you get good counsel on what your options are to protecting your financial position.
If you or anyone you care about is interested in obtaining more information about real estate and mortgages, feel free to contact us
—It’s inevitable that you’ll chat with potential buyers, and in being friendly you may unwittingly reveal something that diminishes your negotiating power. Just saying your spouse got a new job and you can’t wait to relocate gives buyers negotiating leverage. Also, you may say something that seems innocent but violates the law—such as the Fair Housing Act—and gets you into hot water.
—When it’s your own dirt, it’s one thing. No one wants to move in and share space with someone else’s. Enough said.
Flight of Fury divx —You want people to come in to see the house and fall in love. If there’s a flier available, they may just grab it and run. Then you’ve missed a chance at a love connection.
—Getting advice and feedback from local agents during a brokers open house is priceless. Some typical questions to ask agents that come by are, “What do you think about the pricing?” and “How do you think it shows?”
—Need I say more?