Sunday, March 17, 2013

Take the Real Estate Roller Coaster Ride!


The Real Estate Roller Coaster takes on new heights-------
March 15, 2013 “Dow reaches new milestone.”  The Dow Jones average closed on March 14 with its longest winning streak since 1996, 10 straight days of new record highs.  March 5th the Dow went through its previous high mark and it has just kept on pace for another 9 straight days.  Catch this, there are only 3 other winning streaks of this variety in the history of the Dow Jones.

March 15, 2013 “Foreclosure rate moving down.”  RealtyTrac reported that U.S. home foreclosure rates dropped 11% in February from January and were down a WHOPPING 29% from the previous year.  Robo signing issues are gone, shadow inventory as an excuse fades, foreclosures are at their lowest level since 2007!  Home inventory is at all-time lows, not just in Boise Idaho but across the country.  Prices are rising and nothing in the immediate future is going to change that fact.

March 15, 2013 “Freddie Mac announced that the average loan rate for a 30 year mortgage crept upwards this week from 3.52 % to 3.63%."  This is the highest borrowing rate that we have seen since August of 2012; the low was November of 2012 at 3.31%.  Guess what?  They are going to continue to rise.

What to make of it all?  When the stock market raises the bond market falls; when the bond market goes lower, interest rates rise. Money leaves bonds, goes to stocks, so to get money back to bonds interest rates have to rise.  If you have been considering selling to buy up or downsize, now is the time to MOVE.  Spring selling season is days away and as yards turn green, flowers bloom and people begin their annual home searches. You should be ready to GO.  Interest rates will rise, they just have to!  The  U.S. Treasury department cannot keep buying bonds to support the lower rates.  When the rates start to rise they can go quickly, history has shown us that rates can rise faster than the ocean tide on a full moon. 

Stay tuned for more of the real estate roller coaster ride and what to do.
Rick Bennett
Your Best Boise Real Estate Agent
208-412-2507
rickbennett@id-buy.com


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