Hi all: I would imagine a lot of my brothers and sisters in the business are in shock as interest rates for a 30 year fixed mortgage have gone from a low of near 4% (4.15% APR) to closer to 4.5% (4.65% APR). Is 4.75% the new median?
Obviously, the rise is rates has choked off almost all refinance business which was estimated at 85% of the market. The rise in rates is most likely due to signs the economy is on the mend. Although some of the numbers out there are more encouraging, don't bet the farm we're on our way to recovery.
In fact, I wouldn't be surprised if we see mortgage rates back down to 4.25% (4.39% APR) shortly after the first of the year. Let's face it. The economy has a way to go. In fact, unemployment recently increased to 9.8%. Other sobering news may come on retail sales for the holiday season. I still think Americans are spending less money across the board even if they have it.
So let's see what happens in the next few weeks. Rates have taken an upward swing the last month. Again, I wouldn't be surprised if they tick back down a bit. What do you think? Did I just smoke something good? Have a great day!
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