Time To Pull Your Head Out Of The Sand: Interest Rates Are Up, Up, Up

By
Mortgage and Lending with SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) NMLS 223495

Interest rates are up, up, up!

Bonds are selling off.  Since November 4th, the yield on the 10 year bond has risen more than one full percentage point.  That's a big deal, folks. 

You'll remember that we started out the month of November with the US Treasury pledging to buy $600 billion in assets.  This worked previously, as bond yields fell to historical lows, and buyers were able to buy homes with 30 year mortgages priced as low as 4.000%.  It's no longer working.

Both buyers and REALTORS quickly came to rely on mortgages in the low 4s, and many are waiting for this "blip" in rates to subside.

That wouldn't be a good bet, in my humble opinion!  We're in the low 5s right now, and I don't expect rates to stay here for long.

Action Point:

Shake off the winter blahs.  Make hay while the interest rate sun is still shining on you and your buyers!

_____________________

I'm Mike in Tucson, your preferred Tucson Mortgage Lender.

NMLS #223495

SUNSTREET MORTGAGE llc ~ Correspondent Mortgage Bank
Offices (AZ) Mesa, Tucson, Sierra Vista, Nogales, and Albuquerque, NM.

close

Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. 1~Judi Barrett 12/16/2010 01:15 PM
  2. Larry Brewer - Benchmark Realty llc 12/17/2010 07:38 AM
Topic:
Mortgage / Finance
Groups:
Realtors®
The Economics of Real Estate
True Mortgage Professionals
The Ninety-ninth Percentile
LA Connection
Tags:
interest rates
mike in tucson
tucson mortgage
sunstreet mortgage llc

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Rainmaker
592,907
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Well golly!

Surprise, surprise, surprise!

Bill

Dec 16, 2010 01:50 AM #1
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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Bill,

It had to happen.  The funny thing is that so many people I talk with say they will wait for the rates to come down again...

Mike in Tucson

Dec 16, 2010 03:11 AM #2
Rainmaker
504,688
Teral McDowell
Referral Patners LLC - Murphy, TX

We all knew this day was coming; thanks for sharing with us and btw, I haven't heard that "make hay" expression in awhile, sure fits...Merry Christmas, Mike!

Dec 16, 2010 03:38 AM #3
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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Teral,

It comes from my many years working cattle just north of you in Caddo, OK.  260 acres of the GlenMar Ranch produce hay for the cow/calf operation.  Merry Christmas back at 'ya!

Mike in Tucson

Dec 16, 2010 06:24 AM #4
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Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Mike, I've seen the showing activity pick up and hadn't realized that rates were already into the 5's! Wow.

Dec 16, 2010 08:50 AM #5
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1~Judi Barrett
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Mike,

It's time for those that have been procrastinating to wake up... find that home and get that loan...   Still wishing that you were licensed in OK!!!!

Judi In Southeast Oklahoma

Dec 16, 2010 01:13 PM #6
Rainmaker
678,889
William James Walton Sr.
WEICHERT, REALTORS® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

Many buyers who should have bought but didn't because they were waiting for a "bettter deal" are now going to wish that they had...

Dec 16, 2010 01:23 PM #7
Rainmaker
643,145
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

Mike, I realize that they are going up but for someone who bought a home during the Carter years (12.5% was a good rate) this rate is still good.  That said why would you not want to jump on the bandwagon and buy a home now when you can still get a kick butt interest rate.

Dec 16, 2010 02:19 PM #8
Rainmaker
920,697
Larry Brewer - Benchmark Realty llc
Benchmark Realty LLc - Nashville, TN

Mike I was thinking about writing a similar post yesterday, and didn't get around to it. I hope you don't mind that I reblogged it. I believe we are headed for 6 percent by July.

Dec 17, 2010 07:39 AM #9
Rainmaker
1,560,731
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

HA HA HA Pulling one's head out of the sand is being rather polite!!  @Marchel #8 -- yes, and during the Carter years home prices were about what?  $50,000 -- maybe $500/month . . . it's all relative.  ;-)

Dec 17, 2010 07:45 AM #10
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Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

I have to agree with Carla that you did indeed put it politely! Those that are still waiting will be whining later on.

Dec 20, 2010 09:07 AM #11
Rainer
145,261
Rick Cignoli
Norcom Mortgage NMLS# 71655 Equal Housing Lender - Avon, CT
Sr. Mortgage Loan Officer

Mike ... Can't say we didn't warn the fence sitters these past few months.

Dec 20, 2010 09:39 AM #12
Rainer
63,642
The Stewart Team - Abdon Stewart NMLS 213207
AmeriFirst Financial Inc NMLS 145368 AZ BK #0013635 Equal Housing Opportunity - Peoria, AZ
Real Professionals Helping Real People

Sure feels like we are moving to the "bird in hand" theory when it comes to rates. Lock it today, cause it may not be here tomorrow!

Dec 30, 2010 08:09 AM #13
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1~Judi Barrett
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Mike,

Just popped back by to see what you've been up to.  Hope you had a wonderful Christmas.

Jan 08, 2011 11:55 AM #14
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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Judi,

We did.  Thanks!

Abdon,

My clients who missed the bottom are buying down their rates.

Rick,

Preach it!

Barbara-Jo,

I'm a polite sort of guy...  :)

Carla,

We still did business back in the Carter years, didn't we?  And the seniors were getting 15% on their CDs.

Larry,

Thanks for the re-blog!

Marchel,

You're right; the rates are still "kick-butt!"

William,

Well said!

Judi,

Me, too.

Connie,

It only takes a day, sometimes just hours, for the bond market to move against us.

Mike in Tucson

Jan 11, 2011 01:09 AM #15
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