Will rates increase...yes, make it a tool to write that deal.

By
Managing Real Estate Broker with Alpine Lakes Real Estate Inc., NHRE# 02863

 

Why we see Mortgage Rates rising?

After reaching the lowest levels in decades, mortgage rates have shot higher over the past two weeks. After the Fed's official announcement on November 3, mortgage rates began to move higher for a variety of reasons. There are stronger than expected economic data causing investors to raise their outlook for economic growth, which generally leads to higher inflation. In addition, there was substantial opposition to the quantitative easing program from other countries and from many US politicians and economists, meaning that the Fed will face strong resistance to an expansion of the program. Investors had viewed the $600 billion initial level as a first step which would likely be increased in the future. Stronger economic growth and opposition to quantitative easing has reduced the likelihood that the program will be increased.

The recent news has not been uniformly negative for mortgage rates. Current inflation levels remain extremely low. In fact, the Consumer Price Index data released this week showed that annual core inflation dropped to a record low in October. The bottom line, when mortgage rates reached such extremely low levels, it has left them in a position to reverse direction very quickly (there is no place to go but up).

Due to the Thanksgiving holiday, all of this week's economic reports will come out before Thursday. Revisions to third quarter GDP and Existing Home Sales will be released on Tuesday. Durable Orders, New Home Sales, Personal Income, Consumer Sentiment, and the Fed Minutes from the November 3 meeting will come out on Wednesday. There will be Treasury auctions on Monday, Tuesday, and Wednesday. Mortgage markets will be closed on Thursday and will close early on Friday

 

If you have buyers sitting on the fence a rate increase may push them one way or the other…I always say a yes is as good as a no, it erases a maybe.

It’s time to write the maybe contracts…make it a yes.

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                                                                                                                                                                              Your-White Mountain New Hampshire real Estate Expert

                    steve@alpinelakes.com toll free 800-926-5653 /cell 603-381-7898

                        MLS search and Realtor web site: www.alpinelakes.com

                         My outside Blog: www.steveswhitemountainblog.com

                    Lincoln NH &  Local interest site: www.localism.com/nh/lincoln

    Grafton County NH MLS search

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Jeff Lundquist 11/22/2010 03:51 AM
Topic:
Home Buying
Groups:
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Independent Brokerages
Blatant Politics
Diary of a Realtor
Advice for Buyers
Tags:
mortgage rates are on the rise
steve loynd alpine lakes real estate lincoln nh

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Rainer
25,714
Jeff Lundquist
United Country Premier Real Estate - Annandale, MN
Jeff Lundquist

Absolutely correct. Buyers who are waiting to see the bottom will be too late. Act now!

Nov 22, 2010 03:28 AM #1
Rainmaker
460,375
Paul Walker
Equity Fifty Five Realty, LLC - Scott AFB, IL
Scott AFB IL Area Realtor

Now is the time to buy a home! Interest rates cannot and will not stay down at these extraordinary low rates much longer!

Nov 22, 2010 03:29 AM #2
Rainmaker
180,034
Dana Scanlon
Keller Williams Capital Properties - Bethesda, MD
Bethesda MD- Award-Winning Bethesda Realtor

The prospect of rising rates has already gotten a few clients off the fence. We had a very slow negotiation on an offer to purchase a home, with sellers overseas and in no hurry to respond. My clients finally decided it was better to lock in their rate last week than spend a few weeks slugging it out over what amounts to a 1% difference on price.

Nov 22, 2010 03:29 AM #3
Rainmaker
631,143
Mike McCann - Nebraska Farm Land Broker
Mike McCann - Broker, Mach1 Realty Farmland Broker-Auctioneer Serving Rural Nebraska - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

I remember when rates dropped to 8.5 and we were selling houses like hot cakes due to the "low, low" rates... Now watch the dispair crop up when they hit 6 %....

I agree...if you are on the fence...buy now!!!

Nov 22, 2010 03:35 AM #4
Rainmaker
39,310
John Whittinghill
Keller Williams Realty First Atlanta - Marietta, GA
Marietta, GA Real Estate Agent

Hope this reaches the right buyers, Steve!  Definitely what needs to be said, unfortunately, everyone always thinks they have another day, week, month before they have to make a decision.

Nov 22, 2010 03:36 AM #5
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

I fully expect to hear from past lookers...that they should have moved on deals this summer and early fall, and all I can say is...yes I told you that - didn't I?

Nov 22, 2010 03:48 AM #6
Ambassador
544,185
Gerry Michaels
Glasswork Media Arts - Gettysburg, PA
GettysburgGerry Social Meida

Steve, I really like that "a yes is as good as a no, it eliminates a maybe", great way to look at it, I just had a listing appointment today and the seller asked, "I have always heard that the holidays is worst time to put your house on the market". I responded that I hoped more potential sellers think that way, then when we put yours on the market it will have less competition. He liked the outlook if he wasn't all that convinced I was correct. In this market especially gotta keep the accentuating the positive

Nov 22, 2010 06:34 AM #7
Ambassador
544,185
Gerry Michaels
Glasswork Media Arts - Gettysburg, PA
GettysburgGerry Social Meida

Steve, I really like that "a yes is as good as a no, it eliminates a maybe", great way to look at it, I just had a listing appointment today and the seller asked, "I have always heard that the holidays is worst time to put your house on the market". I responded that I hoped more potential sellers think that way, then when we put yours on the market it will have less competition. He liked the outlook if he wasn't all that convinced I was correct. In this market especially gotta keep the accentuating the positive

Nov 22, 2010 06:34 AM #8
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Gerry, That's the way to make lemonade my friend.

Nov 22, 2010 07:58 AM #9
Rainmaker
3,981,241
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have a client that is com[plaining that he waited to long because the rate went up a 1/4%.  Then he asked me if he should wait and see if the rates come back down.

I told him I was not getting on that bus.  If he waited, he may be left at the station...alone!

Nov 22, 2010 08:27 AM #10
Rainmaker
597,934
Valerie Osterhoudt
Johnson Real Estate, Inc. - Cromwell, CT
ABR, Cromwell, CT Real Estate ~ 860.883.8889

Steve.. My broker and I have seen this day coming for a while now.  We are predicting that by March and April we will see a very positive turn in real estate... and it might be due to the increase in interest rates.

Nov 22, 2010 10:46 AM #11
Rainmaker
1,132,361
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Steve  - Like betting on a pro football game on Monday. The Iron is hot to strike now

Nov 22, 2010 01:06 PM #12
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Val...the bad news may make the difference, so many folks are being complacent with these great rates...seeing an end to that will cause people to pull the trigger...or get serious about current choices.

Nov 22, 2010 01:15 PM #13
Ambassador
3,784,182
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Steve, we have seen about .25% increase over the last two weeks, which means that the rates are still very good.  It will be interesting to see what the rates do between now and the end of the year.

Nov 22, 2010 01:42 PM #14
Rainmaker
1,051,721
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

George... It couldn't stay this low forever, I have seen buyers come out when rates go up,,,as not to miss the last opportunity for a deal on the rates. This is not a bad sign.

Nov 22, 2010 01:58 PM #15
Rainer
78,789
Dee Bundy
Fort Collins Realtor @ C3 Real Estate Solutions - Fort Collins, CO
Helping You Make Colorado "Home"

Hi Steve - I just returned from the NAR convention and this seemed to be what was preached from one end to the other.  Rates can only go up at this point (and soon) but so few actually realize how much an increase will decrease buying power.

Nov 22, 2010 02:41 PM #16
Rainmaker
565,518
Mike Saunders
Lanier Partners - Athens, GA

The wrong thing to do is to sit on the fence right now with the high probability that mortgage rates will increase significantly.

Nov 23, 2010 12:55 AM #17
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