Interest Rates UP
Well, the end of an historically low interest rate era has come. My recent client in escrow just locked in a 3.75% interest rate, but he’ll be the last for a while. Rates for FHA have climbed to about 4% and for investors at about 5%. While this might change our game plan, it also means a lot of middling, half-interested, opportunistic investors have dropped out of the market. That will make prices drop and opportunities for committed, patient buyers rise. I’m excited to see how the market reacts and I’ll keep you posted.