An
ugly week in the MBS market has moved mortgage rates up. Statements by
the Fed and its leader, Ben Bernanke, regarding the time frame
for easing back on the MBS stimulus known as QE, were considered by
investors to be a thumbs up on current economic growth. Essentially, if
the Fed is so optimistic about the speed of recovery, that it's willing
to pull back on the stimulus much earlier than
previously indicated; then investors definitely want to be taking
advantage of the potential increases in the stock markets. So, they
moved their investment funds from the bond markets to stocks, which
drove the bond markets down and interest rates up.
That's an extreme simplification of what went on this week, but how much do you really want to know?! A reality check is due, and it's likely that mortgage rates could get somewhat better over the coming weeks. Maybe not a lot better, but better. Our economic growth rate is not stellar, and there is still no fear of inflation, so many analysts expect to see the Fed continue its stimulus efforts. However, markets will bounce on every word from that group, and every word will be scrutinized more closely as time goes on. On the fun side, I've attached a colorful Housing Market comparison graphic that may be of interest. It shows the fall and rise of housing prices from 2009, 2011, and 2013 across the country. It may be helpful in convincing your buyers and sellers to do something sooner rather than later. The percentage of loss or gain shown is a 2 year comparison. So, the first one shows home prices declining an average of 17.6% from March of 2007 to March of 2009, and so on.
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5 home selling mistakes with Team Thayer 1. Trying to sell your home yourself In this DIY era, the urge to try to sell your home yourself to save money can beckon like the smell of oven-fresh cookies at an open house. Resist. Working with a licensed agent helps ensure you’re not leaving money on the table as a result of an off-target listing price or a mistake in the many steps that lead to a final sale. Sell your sofa yourself online. List your home with a professional. 2. Picking the wrong Realtor Not all agents are equal. Just because your college buddy dabbles in the industry doesn't mean he’s the best guy to sell your home. You want experience. You want to work with an agent who has a depth of knowledge. Invite your buddy to the house-warming party. Find an agent who can truly perform. Do you research. Top Home Sales Mistakes 3. Pricing your home too high Sometimes it’s good to aim high. But when you’re setting a price for your home, it’s better to b