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Interest Rates

June 21st, 2013 2:01 PM by Rob Robbins

As many of you know the Fed announced on Wednesday the 19th of June, 2013 they would be reducing the amount of money they are putting into the market. The stock market dropped like a rock but I believe it was just an excuse to correct itself. Don't kid yourselves, Wall Street knows how to make money in an up or down market. It will come back in a few days most likely.

Something else happened based on the Fed announcement. The banks realize that the cheap money they have been using will come to an end. The result, interest rates went up a full percent and may go higher in the coming months preparing for the increase costs in borrowing money for the banks in 2014. In turn, it increases your interest rates. This however will most likely not change in a few days. I believe we will see interest rates at 4.5% to 5.5% to be the new low and will go higher.

For all of you that have been waiting to sell your home when the prices got better may have not gained anything. A buyer can now afford less than they could a few days ago. If you are wanting to sell your home in the next year you had better speed that process up before interest rates go higher.

For those of you on the fence about purchasing a home have waited to long for crazy cheap interest rates probably not to be seen again in my lifetime.

Interest rates are still low and let's not lose track of that. The chances of rates going higher far out weigh the chances they will be lower.

If you are wanting purchase a home you had better get with it or your dream home is going to have to be smaller.

Have a great day!
Posted in:General
Posted by Rob Robbins on June 21st, 2013 2:01 PM



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