Home Loan Interest Rates Are
Going Up! Here Is Why!
The Federal Reserve revealed in the minutes of the last Federal Open Market Committee (FOMC) meeting that it has decided to implement a "balance sheet reduction program" of its estimated $4.5 trillion balance sheet. This will increase the supply of mortgage backed securities, treasury bonds and other debt obligations which we believe will decrease the price and thus increase the yield of the instruments which home loan interst rates follow.
As median income continues to not keep pace with the increase in real estate prices, interest rates and other increases to the overal cost of ownership, real estate market values could suffer. Potential home sellers may want to take advantage of this opportunity to sell their home now before prices adjust lower. Home buyers may want to consider buying now and locking in very low interest rates for the locg term.
If you have questions call Mike Litton 760.802.9500 today. Or feel free to visit www.sold760.com.
As always, thanks for listening!