June 11th Market Update: Where are rates trending?

Good morning,

As far as rates are concerned, it brings an older song to mind. The lyrics may get stuck in your head if you’ve heard it before…’what goes up, must come down, spinning wheel got to go round’  If you feel the need to hear the whole song, it’s Spinning Wheel by Blood, Sweat and Tears.

Eventually, we will see that phrase turn an interest rates rise. When? That’s anyone’s guess at this point. Analysts from every sector have been in agreement that we’d be nearing 5% by now for over a year.  We’ll take ‘em while we’ve got ‘em but a big thing to note is that even with rates remaining low, the housing market is still sluggish.  Why would this be?

There are two purveying thoughts on this. First is that most who have refinanced into rates even lower than now have shelved the idea of moving unless that perfect home comes up on the market.  If everyone waits to list our homes before buying, what is available to choose from?  Second is that the younger generation has seen a huge downturn in the housing values.  Why invest in something they don’t believe will ever help them financially?

People will always need to move, and expand or contract their homes based on family size and lifestyle but the major question for anyone relying on home sales is how to motivate first time homebuyers which tends to trickle up.

Have a great week!

Matt

Rates: 30 year fixed at 4.125% (APR 4.205) and the 15 year at 3.375% (APR 3.474), FHA: 3.75% (APR 5.835): As always rates change with individual credit scenarios and programs, APRs are estimated based off of a $250,000 purchase price with 20% down and a 740 credit score, if you want an exact quote, call. These are not quotes, merely a baseline measure to gauge how rates change from week to week.