Tucson AZ Home Loan Info

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Bond Auction Disappoints; Long Bonds Tank. (What It Means for REALTORS & Buyers)

pool photo courtesy Spaceball on FlickrThe bond market anticipates future inflation, and demand today for longer term bonds (10 - 30 year) was much less than anticipated. 

The result?  Interest rates, after falling to historic lows this past three weeks, are headed back up

  • If you're a REALTOR, light a fire under your buyers.
  • If you're a buyer, it's time to jump in.

The only thing that I can see pushing bond yields back up (and interest rates down) would be the government stepping in and purchasing bonds.

Don't count on it.

 _____________________________

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona
Call me
if I can help you with a purchase or refi mortgage;
(520) 349-9090

photo courtesy Spaceball on Flickr

Comment balloon 20 commentsMike Jones • May 07 2009 05:53PM

Comments

I think we will see under of summer rate start to climb quickly

Posted by Eric Reid (Renaissance Realty Group of Keller Williams Atlanta Partners) over 11 years ago

Good post, this is something buyers need to be aware of.

I will be shocked if the Fed steps in and buys again.

Posted by Mark MacKenzie over 11 years ago

Not sure why we wouldn't think our government wouldn't intervene? They seem to like spending our money on everything else...this I just might agree with.

Posted by Kathy Toth, Ann Arbor Real Estate Experts - Kathy Toth Team (Ann Arbor Market Center Keller Williams) over 11 years ago

Great heads up thanks for posting the info I'll call a couple of buyers that are sitting on the fence.

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) over 11 years ago

This is a good heads up!  I figured these low interest rates wouldn't be here long. 

Posted by Marchel Peterson, Spring TX Real Estate E-Pro (Results Realty) over 11 years ago

Interesting information -- will pass along to buyers -- thanks. Hope all is well with you and yours there in Tuscon.

Posted by Bob & Carolin Benjamin, East Phoenix Arizona Homes (Benjamin Realty LLC) over 11 years ago

Thanks for the heads up on that. I have told quite a few of my clients this week nearly the same information on rates. LOCK IT if you can.

Posted by Chip Jefferson (Gibbs Realty and Auction Company) over 11 years ago

Hi Mike: One word Yick.  I wouldn't be surprised to see some more follow through next week with the bonds edging up (in yield) again.

:)

Posted by Matt Listro, Your Credit Repair Expert (National Credit Fixers - Matt Listro) over 11 years ago

While we might not want to see the rates go back up, it might be just the 'news' that will inspire those sitting on the fence to go ahead and make their purchases.  Some people just don't realize how much a rate change can impact their monthly payment.

Posted by Carol Smith (Casmi Photography) over 11 years ago

GOOD AFTERNOON MIKE!  I would like to re-blog this and hopefully it will light a fire under some of my Buyers! Thanks for the note yesterday and soon as I can wrangle Laural we'll come by! -- Gab

Posted by Gabrielle Kamahele Rhind, Broker/Owner (KGC Properties LLC, Tucson Property Management & Real Estate) over 11 years ago

Interestingly enough, I sort of felt that interest rates would begin to inch up by this Summer.  It looks like I may not have been too far wrong from that.

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) over 11 years ago

Mike,

Good advice for the buyers to be aware of! It appears interest rates always escalate during the summer...still holding true!

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker Realty ~ 512.750.6899) over 11 years ago

News that's good to know -- I've reblogged. But why do you think the bond market did this? And why won't the gov't buy -- didn't they commit to keep buying through the end of June, or was that something else?

Posted by Ann Heitland, Retired from Flagstaff Real Estate Sales (Retired from RE/MAX Peak Properties) over 11 years ago

Hi Mike, thanks for the info....do you re-visit you posts to answer ???'s  Guess I'll find out as I'm asking if this is a trend you expect to continue.  Thanks, have a super weekend.

Posted by Gail MacMillan over 11 years ago

Hi Mike, Hope all is well at your household. I was just reading a post from Mirela and commented on one thing we can count on. Nothing. Because the real estate and mortgage markets can pack a punch overnight. We've seen it before and this market will eventually do it too. We just don't know which day. kate ford

Posted by Kate Kate over 11 years ago

Mike  We knew the shoe would drop - now we know it won't be long,  Karen

Posted by Karen Kruschka, - "My Experience Isn't Expensive - It's PRICELESS" (RE/MAX Executives) over 11 years ago

Mike - You haven't posted in a few days.  I know your wife wasn't well a few days back.  I certainly hope things are well with her, and with you!

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) over 11 years ago

Mike -- I hope things are ok. Miss your posts. The loans I'm waiting on from other lenders to close my listings are not coming through on time -- what's happening in the mortgage market?

Posted by Ann Heitland, Retired from Flagstaff Real Estate Sales (Retired from RE/MAX Peak Properties) over 11 years ago

Checking back to see how things are. Hope to see another word or two from you soon. And, of course, a great picture.

Posted by Ann Heitland, Retired from Flagstaff Real Estate Sales (Retired from RE/MAX Peak Properties) over 11 years ago

Mike? Sending well wishes to your household. kate ford

Posted by Kate Kate over 11 years ago

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