Bond Prices Rise & Rates Drop

Those in the process or thinking about buying a house may have just caught a break if they’re financing. In a surprise move to most investors, the Federal Reserve announced yesterday that they’ll leave alone its $85 billion monthly bond purchases. Citing the jobless rate, a recent surge in mortgage rates and other borrowing costs as a potential risk to the recovery of the economy, the Fed maintained its purchases which had the desired effect of raising bond prices and conversely lowering mortgage rates Wednesday afternoon. Exactly how long any dip in mortgage rates may last is always a guessing game, but those nearing a purchase are likely wise to take full advantage of any rate reduction.

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.

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