Interest Rates for 2014 and Borrowing Power

Interest rates have been very low now for a long time. This has been partially because of the Federal Reserve Bank buying $85 billion in bonds every month. The Fed are finally confident enough about the recovering economy that they are scaling this back a little.

Interest rates are likely to rise during 2014. We have been saying this for the last 2 years of course, but now it seems likely to be true!

Today I was with 4 lenders, who projected likely year end 2014 rates to be between 4.75% and %5.25. The one projecting 5.25% believes the economy will do well in the next year. I am tempted to agree with him.

Tighter Government lending rules will probably reduce the purchasing power of buyers from January 10th 2014. So, combined with higher rates, the amount that a buyer will qualify for, will most likely be lower in 2014 than it would have been in 2013. That's just a fact of life.

If you are wondering how this affects YOU, call me on 949 584 7289.

Short Sale Open House in San Clemente emailFlyers.net - Slideshow - 15 Via Canero - San Clemente, CA

I have this house for sale as a short sale and will be holding open house Saturday Jan 19th noon to 3pm.

Great house.


emailFlyers.net - Slideshow - 15 Via Canero - San Clemente, CA

If you are thinking of selling..DO IT!

18 months ago, it was hard to find people who wanted or were able to buy a house. Well, now it's tough to find houses for people to buy!! Inventory of houses for sale is under half it's normal level, and that is leading to a frenzy whenever something good comes up.

If you are considering selling, then now is a good time to get out there.

Interest rates are still low so it's a great time to buy also. I believe prices will rise over 50% in the next 5 to 7 years and double in less than 12.

CASH making it hard for borrowers to buy

As if the shortage of inventory were not enough, over 30 % of the property in the area that was bought in the 4th quarter was bought with CASH!
You may well wonder where it all comes from, but it's true!
This makes it a challenge for first time buyers with loans, as most sellers will prefer cash if the prices offered are close.
There are ways to make offers more attractive, but buyers now need to be bold and brave.