How Are the Feds Mortgage Backed Securities and Treasuries Affecting the Mortgage Rates?
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Happy 2014 from The Wolek Group! I’m Jennie Wolek with Keller Williams Advantage in Tulsa, Oklahoma! We are off to a great start and wanted to share some tips and news with you.
At the beginning of this year the Federal Reserve announced it would begin gradually paring back on its purchase of non-traditional assets aimed at stimulating growth. So, beginning this month, the Fed will reduce its monthly purchase of Treasuries and mortgage-backed securities by $10 Billion. The statement also outlined forward guidance for the Fed’s primary policy instrument, short term interest rates.
At Keller Williams Realty we have an amazing research team, and they have summed this up for us by stating that “Because of the Fed’s purchase of mortgage-backed securities it’s likely that mortgage rates will continue to rise, though it may not be a dramatic increase given the modest reduction in the purchase of these assets. Nevertheless, sellers who need to move to a new school district or into a larger home, should consider listing sooner. And buyers who are on the fence would be wise to whittle down their list and make an offer”
We know that 90% of buyers start their search on the internet and many of them plan on buying in the spring. It takes the typical buyer 2 months to find a home, so if you are thinking of selling this year, we need to get you on the market now. Since we know interest rates are likely to go up, let’s beat the rush and put your home in the best position to be picked. You will also have less competition, as most sellers will be waiting until April or May to get on the market.
If you are buying a home, sooner is better as well. As interest rates increase, you will have less purchasing power. This means your sales price will have to be less than what it is today and you may have to settle for a smaller home than what you were planning to buy.
And to help you with your search, make sure you download The Wolek Group mobile app. Just go to your mobile device, download the Keller Williams app and enter our agent code KW112787 at the startup. This will allow you to search for ALL of the active listings on the market. This information comes directly from the MLS, which is our Realtor database and the most up to date information.
Thank you for your continued support and we appreciate you and your referrals!
