Rising Interest Rates - The Waiting Game

Many people have been wondering what’s going on with the interest rates lately.  We have Jeremy Wilhelm from The Private Mortgage Group here to explain what is going on with interest rates.
What’s happening? What is going wrong?  Well, there are a lot of technical things going on in the market right now. 
Federal Reserve Chairman Ben Bernanke has for the past several years purchased an influx of mortgage-backed securities.  Quantitative Easings 1, 2 & 3 are the reason interest rates have been as low as they have been.  The chairman wanted to spur market growth and keep the housing market afloat. 
What has happened, though, is Chairman Bernanke said over the next few meetings, he might pull back on some of those mortgage-backed securities. This caused a huge sell off in the Mortgage-Back Security Market, thus causing interests rates to move up.
Now, interest rates that were at mid 3% have climbed up to nearly 4.5% in just a few weeks. 
This is not all bad, though.  When interest rates are high, it indicates a healthy housing market.  We want the market to improve and continue to grow.
Some of you may think to stay on the sideline until interest rates lower.  You should not wait for rate to drop.  It being a volatile situation with the supply of homes, it is not smart to wait for if and when the interest rates drop back down. 
If you have any questions about interest rates or are interested in buying, selling or investing, please feel free to contact me.  Tasha Moss at 402.612.6693.

Or you can contact Jeremy Wilhelm with the Private Mortgage Group at 402-210-8352 or Jeremy@ThePrivateMortgageGroup.com

There are no comments

Thank you! Your comment has been submitted and is awaiting approval.

Blog Archives

Tags