Fred Griffin: Has The Long Awaited Increase In Interest Rates Finally Arrived?

Has The Long Awaited Increase In Interest Rates Finally Arrived?

Has The Long Awaited Increase In Interest Rates Finally Arrived?  If YES, then only one answer makes any sense, Buy Now!  If the answer is NO, then wait.  The choice and risk belongs to the Buyer, as do the benefits and consequences.  So choose wisely, because the wrong decision could prove very costly!

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Has The Long Awaited Increase In Interest Rates Finally Arrived?  Interest Rates had been steadily going down for much longer than I expected them to.  The thought of the Interest Rate on 30 year fixed rate mortgages not only going below 4%, but actually declining to the low 3%'s is something that in my opinion no one could have realistically  expected.  As low as Interest Rates on Conventional, FHA, VA, and USDA Mortgages were, Interest Rates on  State Bonded Loan Programs were even lower, they went down below 3% for a number of months. 

However, for at least a month and a half now Interest have been steadily increasing, that is until last Wednesday when they sky rocketed for the next three day.  Between the steady increase that we had been seeing in the Interest Rate for the last month in a half, and the huge increases from Wednesday to Friday, today the Interest Rates for most Lenders is 1.25% higher than they were a month and a half ago, with no indication the trend will change.  I have been expecting the Interest Rates to go up for some time some time now, but each time they went up for a few days, they would then go back down again, some times even lower than before.  But this time we are not talking about a few day of increasing Interest Rates, we are talking about six plus weeks of increasing Interest Rates, which has led me to wonder Has The Long Awaited Increase In Interest Rates Finally Arrived?

If Interest Rates are finally on the increase again, then Buyers who are qualified to purchase a home should do so sooner than later.  Every increase in the Interest Rate is going to represent several thousand dollars of lost buying power.  Waiting any longer is a gamble that Buyers need to seriously question if it is worth taking.  No one can answer that question for them, and anyone who tries is foolish to do so.

As professionals all we can do is present that facts, and let Buyers use that information to come to a decision that is best for them.  Should they take a gamble to wait, and Interest Rates continue to go up, or begin to once again come back down, then the consequences or rewards of the decision rest solely on them.  All I can say is that a month and a half increases in the Interest Rate, would not make me feel very secure in waiting.

Has The Long Awaited Increase In Interest Rates Finally Arrived?  Let me answer that by asking another question.  Is a month and a half of increases in the Interest Rates enough of an indication that they are? If YES then only one answer makes any sense, purchase now.  If the answer is NO then wait.  The choice and risk belongs to the Buyer, as do the benefits and consequences.  So choose wisely, because the wrong decision could prove very costly.

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

 

Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice.  For legal advice see an attorney.   For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.

 

Frederick Griffin, Licensed Real Estate Broker    Tallahassee, Florida

 

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Comment balloon 6 commentsFred Griffin • June 25 2013 07:04AM

Comments

yes it has and all those that said they would buy before that..uh nows the time before they creep over 4 and climb up to 5 and beyond!

Posted by Mark Loewenberg, KW 561-214-0370 (KW of the Palm Beaches) about 4 years ago

Fred, I think the interest rates are going up.  The problem for buyers in my market, NE OH (the Greater Cleveland Area), is that we have a shortage of inventory at most price points.

Posted by Pat & Steve Pribisko (Keller Williams Greater Cleveland West) about 4 years ago

Fred -- great repost of George's blog on rising interest rates.  Yes, now is the time to get moving - even if the rates come back down a bit, there are not many experts who expect them back into the 3's.

Posted by Steven Cook (No Longer Processing Mortgages.) about 4 years ago

Hi Fred, Back to the old market, prices rising, short inventory and rising interest rates....the rates crack me up, when I bought my first house they were over 13%!

Posted by Christine OShea (RE/MAX Realty Select) about 4 years ago

Hi, Mark!

 

Pat and Steve - send your Buyers to Tallahassee.  We have almost 2000 homes in the MLS, plus the FSBOs, plus dozens of Foreclosures at the Courthouse.

 

Steven - I still cannot believe that Interest rates went under 3%

 

Christine - I was there!   The joke was, "Put your new home on your Visa Card - you will get a better interest rate"

Posted by Fred Griffin, Licensed Florida Real Estate Broker (Frederick Griffin, Exclusive Buyer's Broker) about 4 years ago

Fred, I do think the long-feared interest rate increase has arrived.  I have seen, over the last sixty days, an increase from about 3.25% to currently 4.5%.  This will cause some to jump off the fence, and others to attach themselves permanently to that fence.  Woulda, shoulda, coulda...

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) about 4 years ago

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