While watching Federal Reserve Chairman Bernanke’s news conference today, I was watching the interest rates jump. Several of my lenders didn’t just have rate increases, they stopped locking loans, because of the rate volatility.
The bottom line, the rates have gone up substantially since May 3 on the probability the Fed will stop their Quantitative Easing (buying mortgage backed securities & gov’t bonds) possibly within the year.
Rates are still great historically, but the 3/4% increase over the past 6 weeks definitely has a negative effect on future refinancing, and a real estate purchase monthly payment will be a bit more expensive.
As I’ve conveyed many times in the past… “Rates go up faster than they come down”… and they are.
Ron Henderson GRI, RECS, CIAS
Multi Real Estate Services, Inc
Gov’t Affairs Chair – California Association of Mortgage Professionals