Interest rates
HI,
Congratulations to the O'Donnells on the sale and closing of their property. Thank you for your trust in us.
Rates on 30-year mortgages jumped this week to the highest level in five months, reflecting financial market anxieties about inflation. Mortgage giant Freddie Mac reported Thursday that the nationwide average for 30-year, fixed-rate mortgages rose this week to 5.91 percent, up from 5.80 percent last week. It was the third consecutive weekly increase and pushed the 30-year rate to its highest level since mid-April, when it was also 5.91 percent.
What does this mean for the real estate market. We will have a more in depth analysis in the next few days, but the basic thought is it won't mean much. Buyers are still enjoying rates that people would have killed for only a few years ago. The expectation is that rates will edge up only slightly for the remainder of the year. The market will be hit hard only if rates go up 2-3 points. There are too many other economic indicators such as positive job growth numbers to think that the market will bear out the "bubble" talk.
What is your "dream home" ? Tomorrow, results of a poll on what makes a dream home.
Make it a great day!
Adam Tarr and Sharon Kotula
Your Phoenix area Real Estate Source