Interest Rate Still Record Low

March 30 came and went and real estate professionals held their breath as the Federal Reserve pulled back from mortgage-backed security purchases. Everyone waited to see what the effect would be on interest rates. Rates have been historically low for a long time and the perception was that this event would cause a rapid increase in rates and thus a slowdown in already sluggish home sales. Fortunately buyers still see 5% as a great interest rate on a 30 year fixed mortgage. The week of May 6^th 30-year fixed-rate mortgage (FRM) averaged 5.00 percent with an average 0.7 point, down from last week when it averaged 5.06 percent. The prediction is that rates will begin to rise. How much and how soon remains to be seen, but today is still a great day to invest in real estate.

So if you are thinking about buying on Orcas Island rates are good and many seller’s are reducing their prices. If you would like to keep an eye on our market you can set yourself up with a myWindermere account at windermere.com and they will forward properties to you by emailing listing that match your request.

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