What in the world is going on with interest rates!?
Rates climbed last week by .2-.5%. It was a fast and emotional moment that happened after the election.Do we think they are just going to continue to keep going up? No, there will be blips on the radar of better days - however his is the trend now. Here is why...The world is not looking at a bullish stance with the market. Meaning there is movement towards riskier investments versus our safe and secure bond market which causes rates to move up. When you keep things in perspective - higher rates isn't necessarily a bad thing. A normal economy with full employment would averagely have rates about 6.5-6.75%. So historically rates are still incredibly low. Also in the last years when the yields on mortgage bonds are so low - we are only getting the standard government loan program. When the yields increase you will get more creative programs and you will see lending ease because the yield on the loan is worth the risk.
We don't know what is going on with rates but we do know they have gone higher and probably will continue. The economy is getting stronger which is a good thing! Here is what I do know for sure...People buy houses when interest rates are 14%. We buy homes because it is where we raise our families and make memories and not because the interest rates are low.