Tucson AZ Home Loan Info

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Time To Pull Your Head Out Of The Sand: Interest Rates Are Up, Up, Up

Interest rates are up, up, up!

Bonds are selling off.  Since November 4th, the yield on the 10 year bond has risen more than one full percentage point.  That's a big deal, folks. 

You'll remember that we started out the month of November with the US Treasury pledging to buy $600 billion in assets.  This worked previously, as bond yields fell to historical lows, and buyers were able to buy homes with 30 year mortgages priced as low as 4.000%.  It's no longer working.

Both buyers and REALTORS quickly came to rely on mortgages in the low 4s, and many are waiting for this "blip" in rates to subside.

That wouldn't be a good bet, in my humble opinion!  We're in the low 5s right now, and I don't expect rates to stay here for long.

Action Point:

Shake off the winter blahs.  Make hay while the interest rate sun is still shining on you and your buyers!

_____________________

I'm Mike in Tucson, your preferred Tucson Mortgage Lender.

NMLS #223495

SUNSTREET MORTGAGE llc ~ Correspondent Mortgage Bank
Offices (AZ) Mesa, Tucson, Sierra Vista, Nogales, and Albuquerque, NM.

Comment balloon 15 commentsMike Jones • December 16 2010 08:58AM

Comments

Well golly!

Surprise, surprise, surprise!

Bill

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) almost 10 years ago

Bill,

It had to happen.  The funny thing is that so many people I talk with say they will wait for the rates to come down again...

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) almost 10 years ago

We all knew this day was coming; thanks for sharing with us and btw, I haven't heard that "make hay" expression in awhile, sure fits...Merry Christmas, Mike!

Posted by Teral McDowell (Referral Patners LLC) almost 10 years ago

Teral,

It comes from my many years working cattle just north of you in Caddo, OK.  260 acres of the GlenMar Ranch produce hay for the cow/calf operation.  Merry Christmas back at 'ya!

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) almost 10 years ago

Mike, I've seen the showing activity pick up and hadn't realized that rates were already into the 5's! Wow.

Posted by Connie Harvey, Realtor - Nashville TN Real Estate (Pilkerton Realtors) almost 10 years ago

Mike,

It's time for those that have been procrastinating to wake up... find that home and get that loan...   Still wishing that you were licensed in OK!!!!

Judi In Southeast Oklahoma

Posted by 1~Judi Barrett, BS Ed, Integrity Real Estate Services -IDABEL OK (Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745) almost 10 years ago

Many buyers who should have bought but didn't because they were waiting for a "bettter deal" are now going to wish that they had...

Posted by William James Walton Sr., Greater Waterbury Real Estate (WEICHERT, REALTORS® - Briotti Group) almost 10 years ago

Mike, I realize that they are going up but for someone who bought a home during the Carter years (12.5% was a good rate) this rate is still good.  That said why would you not want to jump on the bandwagon and buy a home now when you can still get a kick butt interest rate.

Posted by Marchel Peterson, Spring TX Real Estate E-Pro (Results Realty) almost 10 years ago

Mike I was thinking about writing a similar post yesterday, and didn't get around to it. I hope you don't mind that I reblogged it. I believe we are headed for 6 percent by July.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 10 years ago

HA HA HA Pulling one's head out of the sand is being rather polite!!  @Marchel #8 -- yes, and during the Carter years home prices were about what?  $50,000 -- maybe $500/month . . . it's all relative.  ;-)

Posted by Carla Muss-Jacobs, RETIRED (RETIRED / State License is Inactive) almost 10 years ago

I have to agree with Carla that you did indeed put it politely! Those that are still waiting will be whining later on.

Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) almost 10 years ago

Mike ... Can't say we didn't warn the fence sitters these past few months.

Posted by Rick Cignoli, Sr. Mortgage Loan Officer (Norcom Mortgage NMLS# 71655 Equal Housing Lender) almost 10 years ago

Sure feels like we are moving to the "bird in hand" theory when it comes to rates. Lock it today, cause it may not be here tomorrow!

Posted by The Stewart Team - Abdon Stewart NMLS 213207, Real Professionals Helping Real People (AmeriFirst Financial Inc NMLS 145368 AZ BK #0013635 Equal Housing Opportunity) almost 10 years ago

Mike,

Just popped back by to see what you've been up to.  Hope you had a wonderful Christmas.

Posted by 1~Judi Barrett, BS Ed, Integrity Real Estate Services -IDABEL OK (Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745) almost 10 years ago

Judi,

We did.  Thanks!

Abdon,

My clients who missed the bottom are buying down their rates.

Rick,

Preach it!

Barbara-Jo,

I'm a polite sort of guy...  :)

Carla,

We still did business back in the Carter years, didn't we?  And the seniors were getting 15% on their CDs.

Larry,

Thanks for the re-blog!

Marchel,

You're right; the rates are still "kick-butt!"

William,

Well said!

Judi,

Me, too.

Connie,

It only takes a day, sometimes just hours, for the bond market to move against us.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) almost 10 years ago

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