Tags

, , , , , , ,

Last week the US nation learned that the days of untra low interest rates may soon be reaching the end of their rope — and in some ways already have.

With the recent comeback in buyer demand, rebounding home prices and an easing jobless rate, Federal Reserve Chairman Ben Bernanke disclosed that the time for nation’s central bank to start pulling back the reigns on its massive $85 billion-per-month bond-buying program is nearing, and possibly end next year. The idea behind the program was to stimulate the economy by buying bonds in the open market in order to depress interest rates.

No one expected these artificially low rates to last forever, and they had already been rising in the weeks leading up to Bernanke’s announcement.

Rates were still hovering at record lows of about 3.5 percent in early May, only to cross the 4 percent threshold a few weeks later for the first time in more than a year. On Wednesday, the national average for a 30-year fixed mortgage reached 4.58 percent, according to Bankrate.com, which, in the grand scheme of things, is still well below historical norms.

While upward movement has always been inevitable, last week’s news rattled the real estate industry, which has mixed feelings about whether the market is ready for the change and the impact it will have.

Some experts say higher interest — coupled with rapid home appreciation — will uproot the affordability that has recently been luring buyers back to the housing market in droves.

“At some point, with both increasing, consumers will find themselves in a position where they notice homes are more expensive than what they’re used to,” and potentially priced out of the market, said Svenja Gudell, a senior economist at Seattle-based Zillow Inc.

Likewise, if you have been waiting for the market to turn around before you list your home we are finally seeing an upswing. It is, infact a Sellers market. Prices are rising and now may be the time to get your house on the market. Many people are suprised to find out that they actually have equity in their house again. And more than they thought. Please contact me for your free, confidential, no obligation, market analysis on your home. I would be happy to answer any questions that you may have. I can be reached by calling 480-570-0220 or at the email address: KelleysellsAZhomes@gmail.com