Interest Rate Update

Interest Rate Update

November 25, 2013

Interest rates have eased down a tiny bit over the last few weeks. Some "experts" say rates

could dip down again for a short period of time to keep the housing market moving.



Back From The Brink

30 Year Fixed up to $417,000 3.99% to 4.25%

30 Year Fixed "Agency" up to $625,500 4.125% to 4.625%

30 Year Fixed FHA up to $417,000 3.75% to 4.0%

30 Year Fixed FHA "Jumbo" up to $729,500 3.75% to 4.125%





Pending Home Sales Slow


A report just out shows the pending home sales slowed a bit last month which is a good thing.

First of all the report deals with data nationwide. Our area is still experiencing strong sales.

Secondly a little slower pace would actually be good for the market. We have seen record sales

and record appreciation rates over the last 6 to 8 months and that is a pace that is not sustainable

over the long run. We are also seeing many first time or limited down payment buyers having

trouble getting offers accepted due to properties selling over sales price. Sellers are opting for

larger down payment buyers in anticipation of possible appraisal problems.



How Does This Affect You ?
Hopefully the inventory of homes for sale will increase a bit and move the market back to a

more normal pace. Experts believe that the next 5 to 10 years will be very good for the real estate

market. As the economy improves and unemployment stabilizes, more and more people

will feel confident in buying real estate again. Interest rates will move upward at some point

which will also help the market get back to a more normal situation.