I received an email today from a Mortgage Broker in St Paul Minnesota.
Today’s average rate increase has been 1/8%-1/4% thus far.
Big swing in interest rates occurring today for 3 big reasons:
1. HEALTH CARE- love it or hate, this is a big deficit machine that will affect our deficits & inflation. Foreign investors weigh this when considering purchasing our long term debt in the form of Treasuries & MBS (mortgage backed securities).
2. FEDERAL RESERVE BANK- end their $1.25 trillion Agency purchase program (of MBS- mortgage backed securities) in just 5 business days…this has helped keep interest rates artificially low for some time now.
3. CHINA- ‘they are mad & they’re not going to take it anymore’ (i.e. Claiming that their currency isn't valued correctly, Google pulling out, and saber rattling over a trade war) - China holds a large amount of our debt.
If your buyers are on the fence now is a good time to ‘hop off’ and ‘get it while the getting is good’. Rates are still great, prices are still low.
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