We were on the radio – internet radio at www.grapevineradio.com – last Friday for an hour being interviewed by the very intelligent and engaging Geoff Beckstrom. A copy of that interview will be available next week – or you can listen to it on Friday at 3pm by going to the link and clicking on “listen live”. That was really fun.
Bonds are under a little pressure right now simply because nobody can believe that they have gotten as high as they have. For a day, 5.75% was PAR on the 30-year fixed mortgage (that’s the lowest rate you can get before you have to pay extra to get it). We haven’t seen that in a year. Meanwhile the Fed continues to do nothing, which might be a good thing, but more and more emphasis is being placed on economic reports that are, quite candidly, not very good. This could mean a rate cut from the Fed before the end of the year, and I’m predicting that it will happen. When it does, we could get the middle 5%s back for fixed rates, something I really didn’t think we’d see for another 10 years.
The National Association of Realtors put out their year-over-year statistics for home sales and that featured a decline in the median price of a sold house for the first time in 10 years. Note: this means nothing whatever about the price of your house. It might be going up or down; the national statistics don’t tell you.
But the foregoing two paragraphs do mean a couple of things. One, if you’re waiting to buy a house, stop. Now is the time. Two, if you’ve got a variable rate, get off that wagon. Fixed rates are better than variables right now and that’s a situation that can’t continue forever. You need to take advantage. Call us at 787-2162 or email us and we’ll talk.