Mortgage interest rates have taken an all out beating the past few days. Could mortgage rates be the next bubble? A couple of knee-jerk market reactions and here we are sitting a lot higher in interest rates than earlier in the week.
Long story short, government buying up mortgage backed securities hoping to keep interest rates low has sorta backfired as numerous reports show the MBS investments continue to sour due to more delinquencies. I’m sure a few other stories warranted it as well but the artificically manipulating the market was probably the biggest kicker.
Most knew these low rates were not here to stay as more towards the last quarter is when they prediticted interest rates would begin to increase. This kinda of came out of nowhere as rates increased .5625% in one day.
Where to go from here
If you are still in the market for a house, you are in luck… plenty to still go around but a decrease in inventory means there are only about 6 houses per buyer. Finding that low interest rate might not happen for awhile unless the feds inject more $$$ into the purchasing of MBS to try and drive rates downward again.
Still continue to look for Twin Cities real estate and if you have any questions just let me know.
