Yesterday, the Federal Reserve raised short-term interest rates. So what’s it mean for home buyers in the New River Valley?
I’m not a lender. I don’t play one on TV, I didn’t stay at a Holiday Inn Express last night, and I’m not sending three easy payments of $19.99 to be a lender. But when I see low interest rates, I pay attention, because if I know where the low rates are than my clients are probably interested.
I’ve been working with someone who recently made the comment, “well, with the tax credit now expired I expect interest rates will go down a bit more”. I have his permission to retell this story … he just didn’t know it’d be the very day after he said it.
Brandon Nicely wants you to know that interest rates aren’t quite as scary as one would think. Here’s a video to prove it:
The title of this post is a bit shocking, no? I pulled it from an article posted at BusinessWeek.com last week entitled “If You Don’t Buy A House Now, You’re Stupid Or Broke“. Do I believe you’re broke? I hope not. Do I believe you’re stupid? No, although I’ve certainly been called worse. Nevertheless, the title still makes you stand up and take notice.
The all time closing high of the S&P 500 was 2 years ago, when in October of 2007 it closed at 1565. On Friday, October 9 2009, the S&P closed at 1071, 32% lower than the all time high just 2 years earlier. HOWEVER … IT IS 58% HIGHER THAN THE 3/9/09 BEAR MARKET LOW CLOSE.
If you remember, I mentioned two weeks ago about the Federal Reserve stopping the purchasing of mortgage backed securities and how this will effect rates in the future. Well, we got some more news about rates last week.
Allow me to introduce Brandon Nicely, branch partner in Alcova Mortgage here in Blacksburg. The mortgage industry is literally changing on a daily – and sometimes hourly basis – and Brandon’s going to be bringing us the straight talk on what’s really going on in the industry, what’s happening with rates, and what to expect going forward. And we’re going to hold him to every word, it’s as good as gold! Okay … we’ll give him a little leeway.
It seems I keep getting asked “how low are interest rates right now?“, and I keep getting quizzical looks when I respond: