Last week we shared an InfoGraphic from our friend Steve Harney of Keeping Current Matters (www.kcmblog.com) showing that mortgage interest rates are climbing. What we didn’t realize at the time of that post was how fast their climbing. Over the last month to six weeks rates for a 30-year fixed rate loan have risen from 3.25% to 4.625%! That’s more than a 42% increase in less than a couple months! And now, the chief economist for FannieMae, Doug Duncan, has indicated that he believes that he doesn’t believe that the Fed would be troubled with an interest rate of 6.5%!
Right now real estate experts are all over the place in their opinions of where interest rates will ultimately end up. The one thing they seem to be in agreement on is that we’re in for a bumpy ride.
If you’ve been thinking about buying a home, this may be the best time. Higher interest rates mean less buying power.
If you’re thinking about selling your home, higher interest rates and market volatility could make many buyers sit on the sidelines waiting to see how everything develops. This could mean a quick end to the brisk seller’s market we’ve seen in the Greater Boston area in the past couple months.
Rick Coughlin is a residential real estate broker who has been helping people buy and sell homes in Weymouth, Quincy, Braintree, and throughout the South Shore since 1984. He’s been involved in the Associations of Realtors at the local, state, and national levels in a number of different leadership levels. He has been a guest contributor on WCVB-TV’s “Chronicle”; Tom Williams’ “Sound Advice” and is often sought for his real estate expertise and knowledge of the South Shore real estate market. Contact him at Rick@CoughlinHomes.com or by phone, 781.335.2357
Rick Coughlin | Coughlin Homes 