Interest Rates Are Up as of 1-2-2010

Interest Rates Are Up as of 1-2-2010

Potential Buyers, who have been holding off on making that home purchase because of uncertainty in the market, may want to act soon.

Numerous warnings have gone out regarding the possibility of interest rates rising.

Over the last two weeks, interest rates have increased by .375%.  This is the largest increase in over 7 months.

This may be related to better than expected economic reports.  For instance, jobless claims have gone down and the consumer confidence level has gone up.

These statistics push money out of the bond market, which supports interest rates, and into the stock market which is showing strong signs of recovery.

Even if homes have a slight decrease in prices, which may occur with the possible foreclosures which may hit the market in 2010, this hike in interest rates will offset any gain which would otherwise be seen by a drop in home values.

Also, the $8,000 tax credit will no longer be available after the the first few months of the year.