After what seemed last endless stability of our interest rates as they hovered at and just below 5%, the last two days have seen a rise in rates.  The Portland real estate market was loving those interest rates and coupled with the first-time buyer tax credit, we saw an increase in sales in the lower end of our market. 

What’s caused this to happen?  Inflation and debt fears by major investors have made the bond market nervous.  On Wednesday, the bond market was down 159.37 bps (basis points).  This is the bond equivalent to a 500+pt drop in the stock market.  Typically, the bond market fluctuates anywhere from 0-15 bps on an average day.  If the market loses 12+ bps, you will see mortgage rates rise slightly.  Rates started moving up that morning and increased 0.625%.  They increased again today.  Are the days in the 4%’s gone?  Nobody knows for sure.  But, we do know that low rates boost activity in the housing sector.  And, we definitely know that “interest rates trump price” in the housing market (see my earlier blog on “To Buy or Not to Buy”).

About the Author | Janeese Jackson

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My job is service...service to you and your real estate transactions! How can you benefit from my 20 years of experience and expertise? What can I offer to make the process more productive? * Current information on available housing...comparative and competitive market pricing and analysis * Daily involvement in the local real estate marketplace * Thorough, comprehensive knowledge reflecting years of helping others complete their real estate business * Extensive network of professional resources to make the process as smooth as possible My commitment is to you! Being available to you...returning your calls...answering your questions...addressing your concerns...respecting your money...matching your timeline...meeting your expectations...helping accomplish your real estate goals!!