More Pressure on Interest Rates: Going Up?
I'm always watching the real estate news. Here's something interesting I read in the online real estate news:
Apparently, the global bond market has a lot to say to our interest rates for mortgages. Not only does it have influence, it's making that influence felt now. Just last week, the US 10 year treasury notes jumped 5 percent, and that will push up 30 year home mortgages. Why? Because the bond market is a key indicator used by our lenders to determine what to charge for 30 year home mortgages.
That means that mortgage rates are virtually certain to rise. The Mortgage Bankers Association of America is predicting as much as 6.5 percent for conforming 30-year loans.
This is news for real estate agents and buyers, and it most likely points to the summer "high season" for real estate. We all could see rates go from 6.5 percent to 7 percent and maybe higher. Higher rates will put pressure on prices. This means that you could see lower prices when sellers have time limits.
So, if you want to sell, you might want to consider selling soon if you are looking for the best price. If you are a buyer waiting to get into the market -- get ready! The summer could be your time.