I host a lot of open houses a week so get the chance to meet potential buyers and many bring up interest rates. They ask what do you think will happen with interest rates, hmmm I need an answer that sounds good without making a prediction.
Here is my plan: I went to Amazon and ordered a crystal ball and started researching terms and trends to build my presentation, here is my line I plan on saying while staring into my crystal ball:
Interest rates are tied to many factors and most consumers see what the fed is charging for financial institutions which can affect but also can Treasury Bonds and the yields tied to the bonds which we must consider mortgage based securities (MBS) which are bundled and sold by Fannie Mae. The crystal ball says it expects bond yields to go down while MBS goes up and the Fed loosens money by either slowing or reducing rate. But if yield on bonds goees up MBS goes down and the Fed moves up it would reverse trends possibly. The crystal ball says BUY NOW!
Please feel free to use any of my research BUT don’t quote me!
Dick Betts, REALTOR®
The Betts Team
Touchstone Real Estate
The Villages, Florida