NAR Economist Lawrence Yun Speaks Out
Recently the National Association of Realtors (NAR) Chief Economist Lawrence Yun, spoke out about interest rates, and made some predictions about what the future may hold.
Yun points out the obvious, that mortgage rates are still at historical lows, and have been for a long time.
This has created, in my opinion, a somewhat cavalier attitude with some buyers, just like the renewal on the tax credit did a similar thing.
Mr. Yun had a little more to say about interest rates, and what we might expect. I love these crystal ball predictions.
Call, text, or email me today! … I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.
For one thing, Lawrence Yun seems to believe that we can expect to see interest rates on home mortgages climb, especially on 30-year fixed rate loans, into the 6% range, and even into the mid 6% range by the end of 2011.
Many of us thought that we’d see interest rates hike up when the Federal Reserve pulled back from mortgage-backed securities.
Even though the Federal Reserve ended those purchases back in March, as was expected, the impact on rates was relatively inconsequential, and if anything, the rates have stayed incredibly low, all things considered.
Mr. Yun says that private investors have taken up the slack, and absorbed the mortgage backed security supply.
A case in point is Colorado’s 1st Bank. I’ve completed several transactions for clients with Brian Jones at 1st Bank in Boulder (he’s now in the Louisville branch), and I’ve been amazed and the simplicity of the transaction and underwriting process, especially with what 1st Bank considers “portfolio loans”.
The rates for these loans have been spectacularly low. You can call Brian at 303-543-3640 or email him at brian.jones@efirstbank.com. This is not a paid promotion, what I get out of you working with Brian is the certainty that the loan will close on time, the money will be there for the purchase, and the rate and terms won’t change at the last minute. Not a bad deal!
Mr. Yun goes on to say that he believes that if the U.S. government has trouble borrowing, and has to raise interest rates to attract investors to purchase U.S. debt, then the rest of the private sector may also have to pay higher interst rates. Makes sense, unless the government can offer a reasonable plan to tackle the deficit over the long term.
Yun believes that interest rates won’t likely rise above 7%, at least for too long, in the next couple of years. I’d say if you’re inclined to make a home purchase, and want to get some money at a great rate (at or below the 5% or less range), it might make sense to talk to your lender sooner rather than later.
Thinking about buying a new home, or getting ready to sell? It may be time to talk…
Call, Text, or Email me. I will listen to you.
You may also find my neighborhood profiles, and Boulder business profiles informative and useful. They’re both great ways to learn more about what’s going on in Boulder. Call, Text, or Email me today!
–Zachary Epps, GRI, ABR, REALTOR®, full-time RE/MAX professional, and author of the Boulder Real Estate and Neighborhood Guide.
Also, I’m never too busy for your referrals. As a real estate professional intent on giving back to the community, my relationship-based approach is exactly what you’ve been looking for in a helpful RE/MAX Professional.
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