TODAY’S INTEREST RATES
Rates have stayed in pretty narrow range since last week.
Many are concerned that higher rates are on the horizon with higher inflation numbers and the FED tapering their bond purchases
Interest rates are determined by the bond market. When bond prices go up – interest rate pricing gets better.
Now the FED has purchase bonds for a long period time now, which helps keep interest rates low.
If the FED stops purchasing, bond prices would likely go down triggering a rise in rates.
The good news is that the members of the FED have mixed feelings regarding tapering their bond purchases.
It’s likely that the FED will continue it’s current bond strategy until they see several months in a row of strong economic data.
I still feel that rates will remain low but will slowly increase over the next few years.
HOME PRICE GAINS BREAK RECORDS
Based on March’s Case Shiller National Home Price Index – National Home prices went up annually 13.2%.
The Phoenix metropolitan area has led the way for the 22nd straight month with appreciation of 20%!!
The appreciation levels we are seeing today are at the highest levels in 15 years.
The last time these numbers were higher happened in December of 2005.
The important thing to relay to your clients is that even though homes are appreciating at record levels,
a home mortgage payment is usually cheaper than renting and we are happy to show this breakdown to them by pulling average rental rates in the area they are looking.
Real Estate still remains America’s choice as the best long term investment.
CASH BUYERS INCREASING
The amount of cash buyers in the market place has increased to 25% of closings and 33.5% of non first time home buyers.
This is making it more difficult for first time homebuyers and FHA/VA loans to be accepted.
We do everything possible to help our clients get their offer accepted including Pre-Approving our clients.
A Pre-Approval means an underwriter has reviewed the income and assets of a client, and the client is approved pending an accepted offer and appraisal (if needed).
Fairway Independent Mortgage has over 50,000 5 star online reviews – more than any other lender that we have researched.
We strongly believe our prequalification / preapproval helps your clients get their offer accepted.