The up/down trend continues for the 8th week
Interest rates on a 30 year fixed conforming loan moved higher this week with the average overnight rate reported by Bankrate sitting at 4.44%. This is after an eleven point move over the past week and brings rates up to the highest levels we have seen since back on January 12th.
We live in a crazy world and the fact that rates are still sitting at these levels is puzzling. The Fed has slashed their monthly debt purchases by 35 billion dollars and rates really have not moved anywhere. For 8 straight weeks rates have not moved in one direction for two consecutive weeks. Up. Down. Up. Down. Up. Down. However one has to question if next week might break the trend and start pushing rates back to new 3 year highs.
When the Fed started to "taper" their monthly purchases in was widely expected that rates would rise. But they have not. Not yet. And I will continue to ask, how can they go much higher without pushing the United States into insolvency? One thing is for sure rates are still historically very low and home buyers should focus on buying a home that will fit their needs for the long term and lock in a 30 year fixed rate. In all likelihood one day they will look back and say that was a wise decision. Always interesting, always fun.
Paradise Sharks Real Estate