Lock In Your Rates! And Other Thoughts . . .

As I have shared with my readers in my Cash On Cash blog over the past few years, if the stock market rises steadily, then interest rates normally follow suit.  

Over the past several days, the stock market has risen dramatically. As money pours out of bonds, Treasuries and mortgages-backed securities into the stock market, those markets are raising interest rate yields -- at an almost hourly rate -- trying to keep investors.  Buyers and sellers of residential real estate need to pay attention. If you're not paying attention, or you're with a lender or agent who doesn't alert their customers, you may not only be in for a shock but your loan approval could be in jeopardy if you are tight on debt-to-income ratios.

If you are a buyer in contract, make sure your interest rates are locked.  If they are not, I strongly advise you to read the news and seriously consider doing so.  The majority of the media has failed to prepare the public for this, so be pro-active.  

Further, President-Elect Trump has indicated he will likely retain Janet Yellin as head of the Federal Reserve. She and her colleagues have already hinted that interest rate hikes are likely coming. My guess is we will see a full percentage point increase by this time in 2017.

Now the good news!! This run up on the stock market is a sign of renewed confidence in our economy and, with the new administration already sending signals that they are going to encourage U.S. companies to bring the trillions of dollars now banked overseas back to the U.S. (under a one-time tax forgiveness program), we could see a huge investment by business and their infrastructure.

More jobs + higher wages + confident consumers = MORE HOME BUYERS!

Which is VERY good news for sellers!