Interest Rate Update

Interest rates are still looking good. Even with the .25% hike in the Federal Funds Rate long term interest rates remain at historic lows.

30 Year Fixed up to $417,000 3.75% to 4.125%
30 Year Fixed “Agency” up to $625,500 3.875% to 4.25%
30 Year Fixed FHA up to $417,000 3.50% to 3.75%
30 Year Fixed FHA “Jumbo” up to $729,500 3.625% to 3.875%

Here We Go! Get Ready to Ramp it Up With the current struggles in the stock market the fixed interest rates have actually started to ease downward again. This is an election year and the people in power can’t afford to go into the election with a sluggish economy. Right now the housing industry is about the strongest sector of the economy and they can’t let that slow down if at all possible. The media news is all good for the continued strength of the housing market. The Orange County Register on Wednesday this week reported on the front page “Home Prices Edge Close to Record”. Fannie Mae also issued reports that the housing recovery “will continue to march on” and a new report out today says the sales of existing homes in December surged nearly 15% over November. The report says that is the largest monthly jump in history.

How Does This Affect You ? I have maintained for many years that the key component to the housing market is the media. In this case it is not just the local newspaper that is gushing about the strength of the real estate market but other creditable media and news outlets. So enjoy the ride and pass this information along.