Special offer

Interest rates are rising...Is 4.75% the new median?

By
Industry Observer with Responsive Pest Control

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!

 

Contact me

Posted by

Paul McFadden

Comments (3)

Not a real person
San Diego, CA

Let’s just hope that they don’t go up into double digits like they were in the late 1970s and early 1980s.

Dec 14, 2010 11:52 AM
Julie Booth
Fidelity National Title - Federal Way, WA
Keeping the parties informed of the escrow process

4.75% is still a dream rate in my opinion.  Thanks for the post Paul!

Dec 15, 2010 03:33 AM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Russell: I don't see that happening. If anything, the Fed. will stay involved. Double digit rates would kill any likelihood of our President getting re-elected. Take care.

Julie: You're welcome! I agree with you. Merry Christmas to you and your family!

Dec 21, 2010 05:49 AM