1. What would you do? Rates Rising…
Rough time in the 10 year Tbill world. Rates went from 1.94 to 2.52 (6/21/13) the largest increase in a while, (past month), sometimes three in just one Day.
What’s this mean to buyers?
e.g. A recent buyer with high FICOS and $108,000 to put down on a $525,000. Owner occupied Single family purchase saw their rate increase on a 30 year fixed from almost one and a half points with one Lender. Only a slight change in Buying power for this Buyer with excellent (low) Debt To Income ratios.
But to some that’s a large erosion of buying power!
i.e. If they did have close ratios that would mean the loan now has a limit of $357,000 (about 15% less than the requested $417,000. loan)!
But what do the rest of us do now?
It’s generally conceded that with rising Interest Rates you have 3 Options:
1. Pay more.
2. Have the Seller lower the price so You’ll qualify.
3. Split the difference.
Actually 4 Options
4. Gamble that the rate will go back down, continuuing to “Float” your Lock.
What do you think? Rates will go back down, plateau or rise???
Keeping in mind Bernanke’s little publicized speech near the end of last year, that he was going to double the 10 year Tbill in the next 12 months.
So your thoughts on rates in the next half of the year?
2. Local event;
A support group is sending packages to Active Duty service folks, If you can help, I’ll see you there Wednesday?
“Good Morning, Mike.
Finally have a date for our next big packing event. It is going to be held at the Gerry 5 in Marblehead (Beacon St) on Wed. June 26th at 7 pm. Hope you can make it. It will be nice to meet the people I talk to on line. If you have any questions, you can call me on my cell at 617-686-7132.
Hope you can make it.
Thank you, Janet Brings”
3. If you’re not sure what to do as we enter this very mixed, (usually a doldrum mid June through mid August) market, let me know and we can get you into a solid plan of action with “How to Become a Real Estate Investor in 12 Easy Lessons” by Mike Hurney
See you at our next Movers and Shakers, or sooner! Mike Hurney, Director MassRealEstate.net PO Box 307, Marblehead, MA 01945 781-639-8616 office [email protected]