Interest Rates on the Rise

The average 30-year mortgage rate jumped Wednesday to 5.29% from 5.03% the previous day, according to HSH Associates, a mortgage-data publishing firm. The Fed has made low mortgage rates a priority in its strategy to stem the U.S. recession. To achieve that, the central bank has committed to buying $1 trillion of mortgage-backed securities and Treasuries. The perception this month had been that the Fed controlled mortgage rates, but as the economy shows signs of recovery investors worry there won’t be enough demand for it. Signs of a recovery in the U.S. and across the globe have prompted investors to move out of the relative safety of the Treasury market and into securities that may yield more, such as corporate bonds and stocks. The markets will now look to see how the Fed responds.
If you are negotiating a contract, or have clients looking please let them know the market is very volatile.

4 Responses

  1. The market really is very volatile, and hopefully clients read reports like these to know we aren’t lying to them when negotiating a contract with them.

  2. Blog looks great, Wes!

    • thanks Chris. It is a struggle to keep up with it. I am really busy up here in Richmond with a good market. also, our company is going to new agent websites and a blogging feature will be on there so it will be really cool. Thanks.

  3. I could not agree with you more. the more information about the market and other real estate activities the better informed consumers will be and us REALTORS wont always be the bad guys.

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