Interest Rates Jumped to 5.5%!
Uh oh!! As you probably already know, interest rates saw a rapid & high jump on Wednesday, from 4.875% to 5.5%. This means that a client will now have to pay quite a bit more money to purchase the same house. One of our preferred lenders has advised that rates are now back down to 5.125%, but no one is sure we will see those super-low rates again anytime soon.
Economic reports are showing that 5% of prime loans are now delinquent, along with 22% of sub-prime loans (this does not take into account those that are already in foreclosure). Yikes.
Sadly, what is one person's trial can be another person's boon: purchasing property at rock-bottom pricing. Buyers are everywhere, as can be seen from the multiple-offer situation we are often finding ourselves in. It's tough to compete with 30 or 40 other offers, but it can be done.