Brian Kusmer 2013-08-23 00:29:14
Fed Keeping Rates Down? … How it Affects Your Home Values. The Federal Reserve announced at the end of July that it will continue purchasing $85 billion in bonds each month — As stated in The New York Times. The Fed’s bond-purchasing program has helped move mortgage rates to their lowest levels on record in recent months. However, the Fed has signaled that the program could likely come to an end soon, causing a shift upward in mortgage rates from 3.54 in May to 4.37 in July. “The Fed did not mention why mortgage rates have risen — which almost certainly is due to market expectations of tapering in the near future and may have influenced the Fed in not changing its guidance,” Econoday analysts said. Bond purchasing may not be as necessary as more jobs are created. Last month 200,000 new jobs were created and 20,000 were in construction because of low interest rates and home values on the move up. Federal Reserve Chairman Ben Bernanke has made recent comments that a slowdown in bond-buying could begin sometime this year. This information is very important if you are looking to make a move in the next 6 months. Rates even with the hike are still historically low and as we all know they will rise again. Now is a great time to upsize or down size your home because as rates rise you will be looking back at rates under 5 percent and wishing that those rates still existed. Sources: “First Take: Fed waiting, but jobs tell real story,” USA Today (July 31, 2013) and “Fed recommits to current pace of MBS purchases,” HousingWire (July 31, 2013) Bond Purchases by Fed Will Continue, at Least for Another Month, “NY Times” 8/2/13 Brian Kusmer is a long time Scottsdale resident where he resides with his wife, Amber, and their three children. As a local realtor, he is responsible for the sale of tens of millions of dollars’ worth of real estate each year. His clients vary greatly from investors to homeowners to commercial real estate and land development clients. Over the last 15 years, Brian has received many accolades, honoring his competency as a realtor. As a Re/Max agent, he was honored in the Re/Max Hall of Fame, the highest tribute available. He has also earned the Lifetime Achievement Award. Brian previously collaborated with a worldwide direct sales company, providing motivational speaking and consulting for sales training. Currently, he is a member of the HomeSmart Elite Group and is a recipient of the Diamond Club Award. Brian can be reached at 602-469-5823 or at email@example.com. For more information feel free to visit www.teamkusmer.com.
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