Interest Rates Push Higher

The recent rise in Treasury yields has had the effect of pushing interest rates higher somewhat rapidly in the last few weeks. Freddie Mac had the average 30-year interest rate at 4.83% this week, which is up from 4.61% a week ago, and a record low of 4.17% just a month ago. While these rates are still very attractive, especially from a historical perspective, it does bear consideration that rates may continue heading up into next year. Many analysts believe that buyers in a position to purchase who have been waiting on the sidelines may spring into action with interest rates on the rise and likely to not come back down this low again. Those people looking for the bottom of the market may well be seeing it pass, although time will tell if this is the case. It certainly remains a favorable buying climate and unless significant further reduction occurs in home prices, buyers may be best off taking advantage of interest rates below 5%.

Stephen Woodall

REALTOR, GRI @ Long Realty Company

Stephen has made real estate his full-time career and passion since 2008, primarily specializing in the Foothills & the Northwest Tucson areas of Oro Valley and Marana. He is a multi-million dollar producer, representing both sellers & buyers. Stephen has tremendous experience in new home sales, listing & selling primary residences, listing & selling vacant land, listing & selling luxury homes, investment properties, rentals, and real estate development parcels.