Rates Moving Up
When you are buying a home in the Ballantyne or Fort Mill area of Charlotte, you need to have a good lender. Bill McConnell has something to say about the market rates this week.
Was it I who just last week was tooting my horn about how stable mortgage rates have been? Ha! What do I know! Mortgage rates spent 10 wonderful weeks swimming in the warm waters of 4 - 5%. If you were smart, you put on your bandana and stole one of those rates. Maybe you refinanced your primary home and saved a few hundred a month. On the other hand, maybe you took advantage of a great rate and short sale to get that beach house you have always wanted. You look extra-smart today. Give yourself a gold star.
Those who missed the boat by waiting for rates to fall even lower got a rude awakening on Wednesday or Black Wednesday, as it’s been dubbed. Rates took a hard turn for the worse that day as the market reacted to the nation’s growing budget deficit and enormous Treasury issuance. There is a real fear the Fed’s policies are inflationary. This created a run-up that ultimately handed us the worst rates seen so far this year. Today the market’s trying to rebound, but it may establish a new (higher) range before things settle down. The 30-yr. Fixed opened at 5.125% this morning for the best-qualified borrowers.
It will be interesting to see what effect the bad press has on the housing market. I expect the market for refit has to cool a bit, but first time homebuyers should continue to snap up foreclosures and short sales. As the week progresses, shoot me a note and let me know what you are seeing. In the meantime, to quote Tom Hanks in Castaway, “I gotta keep breathing. Because tomorrow the sun will rise…and who knows what the tide could bring.”
Have a great week, and call or email me if I can help you.