Now is the Time to Sell

The time to Buy a Home has never been better. For the first two weeks of 2015, mortgage interest rates approached the lowest rates in over two years! Since then, the Mortgage Backed Security (MBS) markets have been treading water waiting for the European Central bank to announce their own Quantitative Easing (QE) program Today the ECB announced a $1.3 trillion dollar bond buying program spread over the next 19 months. This has lead to booming stock market increases, especially in Europe and the U.S. Throughout today the 10 year Treasury interest rate, along with the MBS markets, had a volitile session as investors tried to figure out the impact of this new QE program. Ultimately we ended up with interest rates stabilizing where they ended up this past Monday.

In the near term, EU interest rates should continue lower. U.S interest rates continue to compete on a Global scale with countries whose interest rates are headed to zero, if not already there, and in some cases are actually now negative! Yes, you have to pay to have some Countries protect your money!

Since January 2nd, mortgage rates still show a decline of over .375% ! I continue to believe the trend for the next few months will be lower though not by much more than today, with rates in the low 3’s (even the high 2’s) depending on your loan program This is creating a great opportunity for any buyers that you may be working with to qualify for a higher loan amount than just a month ago.

As one would expect, Freddie Mac recently announced that interest rates decreased slightly again. The National average this past week for a 30 year fixed was 3.63%, with an average cost of .70 points. A 15 year fixed dropped to 2.93% with .60 points.