These cold, winter months almost always lead to a large portion of time dedicated to lounging on the couch, browsing your Facebook newsfeed. Are we right? But, if you’re going to be spending that much time tapping into the internet, commit a few minutes to searching the latest economic and financial news!
“The U.S. stock market began the year with its strongest start in decades. However, the high demand for stocks has reduced the current demand for bonds, including mortgage-backed securities.”
“A recent report has also been released stating that Chinese officials are considering scaling back or stopping the purchase of U.S. bonds in response to trade tensions with the U.S. This caused investors to become concerned about the potential for less demand in the future. Since mortgage rates are based on MBS prices, lower demand for MBS is negative for mortgage rates.”
Who actually benefits from this?
Well… As long as you have a good credit history, you’ll almost always get those nifty, and oh-so-attractive promotional offers. If you’re selling a home, high interest rates could actually be good for home sales at the beginning of any period of rate increase. But! That doesn’t mean all of you lovely buyers will suffer! A small rate increase won’t cause you to be priced out of homeownership. Mortgage rates are still near historically low levels, so don’t fret!
The best time to buy and sell? Right now! Don’t hesitate to stop in for more information on how we can help you start the process, friends!
For more information on higher rates and current economic data, click HERE!