Dave (00:03):Hey there everyone. Dave Barlow here with Sell For One Percent. We got the whole gang here today.
Everybody’s healthy, feeling better and looking sharp for the Christmas holidays. Let’s jump right into
interest rates. SB, what do you have for us?
Steve (00:22):
Well, happy holidays everybody. We’ve got some good news! Recently, the Fed here in the month of
December raised the interest rate for another half percent. When the Fed raises the rate like that, it
really doesn’t affect our mortgage rates except with the ARM products. With that being said, for the
seventh consecutive month that the Fed has raised the rate, this week our interest rates have held
steady, which is good news. Maybe a little more money in your pocket to get out there and do some
holiday shopping.
The 30 year fixed rate continues to be at 6.125%, the 15 year rate is 5.625%, and the
FHA rate this morning was at 6.25%.
Our interest rates are holding steady and according to
research, a lot of the economists, and a lot of the predictors, after we get into 2023, look for those rates
to drop back into the 5% area. So it’s good news if you’re getting ready to get into the real estate
market.
Dave (01:36):
Good news for home buyers for sure. We talked to Rich Cercone over at Equitable Finance last week, and
Rich said that a lot of the mortgage rates are predicated on what the economy is doing. The consumer
price index, looking at inflation rates and so on and so forth. So they already knew the half point raise
was going to come from the Fed that was already built into expectations. So when the CPI came out a
little lower than expected, it pulled those interest rates down some. So again, good news for home
buyers. The other part is that the inventory levels have continued to be around 3000, and we’ll talk
about that a little bit more. There are also more homes on the market which results in interest rates going
down. I can tell you that my sellers are open to helping with closing costs. So, we haven’t seen that in
about two and a half, three years that a seller is actually saying, “Hey, I can help with closing costs”
versus “Let’s list it for this and expect $40,000 higher than our list price.” A lot of good news out there in
the market for home buyers. All right, guys. Thanks.
