Far fetched- not really. There is an inverse relationship between Bond Prices and Interest Rates.
As our illustrious government spends us into oblivion, there is much talk of the USA loosing it's AAA credit rating; however even if we maintain it, our national debt is mounting as program after program, entitlement after entitlement and earmark after earmark is added on.
Rising debt means rising risk which, in-turn, pushes bond prices down to increase their yields to compensate for additional risk. As bond prices go down, rates go up and we are seeing them creep up ever-so-slightly.
"Interest rates for fixed mortgages rose this week following a run up in long-term bond yields, while ARM rates eased slightly," said Frank Nothaft, Freddie Mac vice president and chief economist. "Rates on 30-year fixed loans were the highest since the starting week of this year."
If you are speculating on the right time to purchase a home, interest rates should weigh heavy in your equation. Certainly as rates rise, affordability drops.
Opinion by William Szilagyi Williams HomeSellers www.WilliamsHomeSellers.com www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs
No comments:
Post a Comment