I've been asked a number of times over the past several weeks to predict the short-term future with regard to interest rates. Thankfully, I've become rather adept at reminding folks that I abandoned prognostication years ago. These are, however, intriguing times, with sellers playing offense and upward twitching interest rates heightening apprehension that a long-awaited steady climb may be next. There is reason to believe it, but no reason to panic – Yes, every upward movement in interest rates undermines purchasing power, but a moderate climb to more sustainable rates would likely be accompanied by expanding inventory. A bit less monetary strength but a bit more to choose from – certainly no crisis. Above all, buyers should remember that any interest rate below 7% is, from a historical perspective, remarkably low. There's a lot of distance between today's 4.125% and that benchmark, so be advised: For buyers and sellers alike, these are the good old days.
Interest Rate Upticks – Navigating Choppy Waters
Posted on July 1, 2013 at 11:34 pm Matt Crile