What is a good rate? Is 4.25% high? I am frankly pretty disgusted with the papers and news blaming Donald Trump for the ½ point surge in rates since the elections. Let’s get this straight real quick – it’s not his doing!!! The Federal Reserve has been threatening to raise rates for over a year. The economy as a whole has not been doing well enough to raise them for fears of stalling the market. Rates have been kept low to stimulate the economy. Anyone who has been following the housing market can agree, the market is adequately stimulated. I say it’s overdue for rates to go up. Home prices have shot up as a result of low rates. This shoot up in prices has made the housing market to fully recover in almost all areas of the U.S. It has not worked here locally for homes over $500,000.00, but it has worked too well for homes under $300,000. Rates had to go up to stall over inflation. It means the Fed is looking positive for further economic growth. While it may slow the housing market a bit, it needs to happen to prevent over inflation.

          4.25 – 5% which forecasters predict, where we will end up this year is still incredibly low. In 2000 we were happy to see rates go below 10%. In 1980’s we were happy to get 14%. The papers and news need to know the facts and quit playing the blame game! The election is over; Let’s grow up and move on! 

Brian