What does it mean when the "Fed" cut the federal fund rate or the bond market fluctuated and thus interest rates went up or down? It's all pretty confusing, but here's the story in a nut shell.
Interest rates went up this past week from 6.125% for a 30 year fixed rate to 6.5%. But, rates are still much lower than they were 4 months ago at 6.75%. Experts estimate that rates should continue to hold steady until the next Fed meeting October 31st as the bond market continues to fluctuate and the Fed might cut the federal fund rate to assist economic growth and combat a recession. So, what does the rate fluctuation mean to home buyers? It is currently $250 less expensive per year per $1000 you borrow then it was in early spring. From speaking with my mortgage lenders, with financing now at 30 year lows it's a great time to buy.
With the new unemployment rate coming out this week, Austin continues to look strong and appealing compared to the rest of the nation with a low unemployment rate, tons of job growth and relatively low cost of living.
Call or email me today and I'll tell you what properties and areas are on my "Deal of the Week" list that are perfect for a "Modified Flip". Also, check out our website so you can personally search the MLS like a REALTOR® or sign up for our daily automatic property searches.
Happy House Hunting! Jessica Bruehl 512-263-6737 or info@jkbrealty.com Search for homes, condos and new construction properties in Austin at www.jkbrealty.com
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I remember when I was a teenager my first car had an 18% interest rate.
Where does the $250 per $1000 per year come in? How is this figure calculated? I've been running numbers and just am not putting that number on anything I come up with. I'd love to be able to explain that to people! Thanks!