Interest Rates Increase: Homebuyers need to act fast!

As of Wednesday, May 15, 2013, the 30 year fixed rate increased by .25% in less than one week, responding to better than expected economic news.  Weekly jobless claims showed a decline to 323K, the lowest level since January, 2008.  Weekly jobless claims measure the number of new claims for unemployment benefits. 

Also, April Retail Sales rose 0.1% from March, above the consensus for a decline of 0.3%.  If consumer spending continues to remain healthy, it will reduce investor concerns about a spring slump in the economy. 

Will the Federal Reserve take the “training wheels” off the economy?  Economists are assuring investors that the Fed will probably gradually withdraw their bond-buying stimulus into 2014 and be ready to reverse this strategy if the economy starts looking shaky again.  Hopefully, we won’t see a sudden, aggressive move in the Fed’s current plans.

If you are thinking about purchasing a home, it’s a great idea to call me now to evaluate your purchasing power so that you can secure the lowest rates possible!

I am happy to offer free consulting and evaluations anytime.  Please call me at 312-909-9718 or email to dianep@anmtg.com.