Interest Rates At Unanticipated Lows TAKE ADVANTAGE

Interest Rates At Unanticipated Lows TAKE ADVANTAGE

Interest rates are at 7 month lows!!!

That's a conversation no one in the mortgage/ real estate industry thought we would be having halfway through January of this year.  In fact everyone expected the exact opposite to be a reality.  After the Fed raised rates in December, everyone was expecting to see a slow and steady rise through the end of 2016.

So what's changed?  Well, interest rates have a long standing correlation with the stock market.  When the stock market goes up, interest rates tend to follow and vice versa.   What's happened is the stock market has tanked since the beginning of the year.  A weak Chinese market coupled with crashing oil prices have absolutely crushed the stock market and rates have floated down in sympathy. 

What does this mean to you?  Well, the market is going to bottom, and may well have already done so, so it means if you're looking to refinance I would highly recommend doing it now and taking advantage of this momentary reprieve.  What about if you're looking to buy?  If you're looking to buy it's also good news!  If you're thinking about Summer time, I don't think we'll see a rate jump, more like a rate creep through the end of the year.  We are probably looking at rates potentially being a quarter to three eights higher through December.  We do anticipate rates continuing to rise into 2017 though.  It's not out of the realm of possibility to see rates as high as 5% on 30 year fixed as early as next year.  Coupled with rising home prices (The Coloradoan suggests the average price of a home in Fort Collins will DOUBLE in 10 years to over $600,000) if you're planning a move it may be time to jump! 

Sarah Rowan Headshot
Phone: 970-397-5774
Dated: January 21st 2016
Views: 4,943
About Sarah: Sarah was a licensed real estate agent for 10 years before transitioning into the mortgage industry ...

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