As the end of February nears, interest rates are at their highest levels since the end of last year. Many things have weighed on the market to move interest rates higher. This morning's Real Estate numbers were slightly negative, but because they were being predicted to be a lot worse interest rates continued to move up.
New home prices were down 4.6% for January and the new median house is worth $201,000
Existing home sales were down 0.4 percent for the month of January.
Inventories roses more than 5% and were up more than 18% as compared to a year ago. This means that it will take even longer to sell your average listing.
Interest rates are now approaching the 6.25% mark on 30 year fixed rate conventional money.
I am still able to do my famous.... "No Fee Refi" deal for anyone that is interested. It was a lot easier and attractive at 5.625% and No Fees than it is at 6.25% and No Fees.
I have advised my clients that decided not to lock in at 5.625% to get their appraisals done, and to get approved and keep an eye on the market. This way once the market cooperates they can lock in, and close in less than a week!!
As always, don't hesitate to give me a shout on my cellphone if you have questions. (215) 870 - 3060
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Chris, welcome to activerain and congratulations on your first post.
Hi Chris,
Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to ya!
-Keith
Thanks to both David Matney in Omaha and Keith Elliot Jr for welcoming me the ActiveRain network.
I look forward to being a member of such a unique and extraordinary organization!!
Todays big news was the PPI numbers just released... Very Hot numbers!! Up 1% in Jan and 7.4% year over year.... The biggest jump since 1981!! It's tough not to think that some tougher times are just a little bit in the future. This piece of the puzzle just reinforces some of the Stagflation predictors.
The stock market has been very resiliant these past several weeks... Showing that some sectors are still oversold and are quite affordable and will be until they add 5 to 10% back to their stock value.
Look for the stock market to continue this resiliancy unless some drastic economic news is announced, or some geopolitical uncertainty in the Middle East heats up.
For now interest rates should be on the rise, and the next big technical and emotional level in the bond market will be the 4% yield on the 10 US Treasury. If the bond reaches this number it could mean bad news for all the people that want and need to refinance their already costly mortgages.
We might look back in 6 months and wonder why we ever got near the 4% yield on the 10 year at this time of the economic calendar, but the beauty of the Free Market System is that there is always a reason that stocks and interest rates go up and down. I do look for rates to retrench into the mid 3% range before the end of the year, but for as to when this bond market rally will occur we will have to wait until some major economic events happen, or a number of key ecnomic indicators to go negative or flat at the same time.
My advice to first time buyers..... Buy your house sooner than later. In the coming years housing prices will rebound and you will be in your house to take advantage of this appreciation. It won't hurt you a bit to write off 100% of your mortgage interest and real estate taxes when it comes time to file your Federal Income Taxes.
CARPE DIEM
Welcome to ActiveRain!
If you would like a few tips on getting the most out of ActiveRain, please visit my blog Welcome to Active Rain. It has a few simple steps of what to do now that you have joined.
If you ever have any questions, just let me know.
Troy TrummChris,
Welcome to Active Rain! For some tips on how to get started here, check out my blog entry at ActiveRain Fast-Start Tips for Quick and Easy Points
Happy blogging and good luck!