Info That Hits Us Where We Live – Rise in Mortgage Rates
QUOTE OF THE WEEK… “Difficulties are just things to overcome, after all.” –Ernest Shackleton, Antarctic explorer
Saratoga Springs, NY – INFO THAT HITS US WHERE WE LIVE… Some see the recent rise in mortgage rates as a difficulty, but the latest Fannie Mae National Housing Survey posits a different point of view. Their chief economist says: “The spike in mortgage rate expectations this month…may increase housing activity in the near term by driving urgency to buy.” He explains: “Consumers may recognize that today’s still favorable mortgage rates and homeownership affordability levels will recede over time…. More prospective homebuyers may be deciding that now is the time to get off the fence.”
The share of survey respondents who believe mortgage rates will increase hit a record high 57%. And the share who believe home prices will go up in the year also came in at a record 57%. So guess what? 72% of respondents believe now is a good time to buy! Rates may ease anyway. The current rise was attributed to the Fed’s announcement it could begin tapering its bond purchases as soon as September. This sent bond prices down and mortgage rates up. But last week, comments from the Fed Chairman, reported below, implied the tapering is off.
BUSINESS TIP OF THE WEEK… As your last task of the workday, create tomorrow’sto-do list. Then next day, make those tasks your primary focus: if it’s not on the list, don’t do it.