A Snapshot of this week’s Housing Market
The home loan rates have inched their way up but appear to be on the precipice of a sharp decline in the upcoming weeks as investors shore up their investments in anticipation of low-growth economy during the first quarter of 2019. The 30-year fixed rate mortgage (“FRM”) maintained a steady rate of 4.46% over the week beginning on January 31, 2019, representing the first time in 2019 that the FRM has increased.
Similarly, the 15-year FRM maintained a steady rate of 3.89% in the same period (an increase), and the 5-year treasury-indexed hybrid adjustable-rate mortgage went up .06% from 3.90% to 3.96%.
The FRM typically tracks the 10-year treasury note, and demand for treasury notes has increased over the past few weeks as a result of investor insecurity over the prospects of consistent global economic growth.
Given that the Fed issued their decision to double-down on an increase in interest rates, investors have put a significant amount of money into bonds. This is good news for investors but does not solve all the potential supply-side issues that may plague the market in the coming months.
At the Chernov Team, we take pride in our ability to keep up-to-speed with an ever-changing marketplace, that means staying aware of good news and staying aware of bad news. As you are likely aware, the housing market is volatile from week to week, and getting into a housing transaction at the right time can be the reason you saved thousands of dollars on your purchase. At the Chernov Team we understand that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.