These last few days we’ve seen a real turn in events. Are those all negative things, or will they help? Guess that depends where you sit on the fence.
BRIEF PEAK AT NEWS.
It’s been a couple crazy days in the stock market for sure. Yes, that might make some nervous, but if you’re in the position to purchase a home today… like right now “today”…. Mortgage bonds are improving. I don’t know what the future holds, but I do know that today there are opportunities.
Typically, mortgage bonds and stocks are kind of on a see-saw. As stocks improve, interest rates (or mortgage bonds) decline as money flows between the two, and vice versa.
Today, the money is heading back to bonds which means better rates if you want to buy that new property… or second property!
Oil prices have broken beneath $28/barrel. You may be thinking to yourself.. Jen, you are in real estate, not the oil industry! Why are you watching oil? Simple. There is a benefit for paying attention to trends.
As we just discussed above, money seems to flow between stocks and bonds. As oil prices drop, this puts additional uncertainty in the economy… which then drives money back from the stock market into the bond market. So, once again.. pay attention home buyers. Rates are good.
Mortgage applications are up 17% from last year at this time. Means more people are shopping for loans. We’ve been saying for years that interest rates are bound to go up…. Well, we might be getting closer to that being a reality.
Calling all real estate investors and home buyers, today there is an opportunity in plain sight. Take advantage of cheap money while you can! Don’t over spend or buy more than you can afford.
The one thing I can say is that despite much of the uncertainty in the news, housing does continue to be a bright spot. Think long term. It will be more cost efficient if you do.
Market Intelligence Matters.
Jen Hudson
(206) 293-1005
Jen@HudsonCREG.com