Interest Rates Defying Gravity!

Real Estate Agent with CHANE REALTY INC 3230505


So why is it that the Federal Reserve raised the federal funds rate, but mortgage rates just fell for the third week in a row, and well below 4%, again?

Although the Fed’s rate change doesn’t directly affect the long-term mortgage interest rates, it does “encourage” them. Global stock markets continued to suffer from falling oil prices, financial crisis in China, as well as other economic factors. This all makes the U.S. Treasuries very attractive to investors, and these are the rates that affect our mortgage interest rates.

As more investors move their funds to those long term treasuries, mortgage interest rates go down. However, once the market starts to improve, you will see more investors move back to stocks and the rates on treasuries will creep up again.


So, there was a lot of fuss at the end of last year about the new mortgage rules and closing documents that were taking affect. These were the biggest changes in home lending rules in the past

Everyone was up in arms about how the changes were going to delay closings and bring everything to a screeching halt…it was the real estate closing Armageddon!

Didn’t happen…nothing, nada. We’re still here.


If you are planning to sell and/or buy in time for the next school year season, this is the time to jump into the market.

Sellers…Keep in mind that the population in Palm Beach County grows by an additional 20% between October and April. You can’t wait until summer and expect to get the largest pool of buyers.

Snowbirds generally start their search in January and they’ve gone back up north by May. Also, buyers with school children want to find a new place to call home by the end of the school year. They want to be moved and settled in by the start of the summer, not a week before school starts.

To get the most out of your sale and reach the largest target audience, put your property on the market no later than February.

Buyers…There are some blunders that can be costly to buyers and run rampant in the industry.

If you find a home you love but take too long to make an offer or counteroffer, the seller will not take you as a serious buyer. Remember, sellers are taking the property off the market to other potential buyers once they accept your offer. Your offer has to instill confidence.

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