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Real Estate News – Mortgage Rates Increase to 6 month high
The average rate on a 30-year, fixed-rate home loan climbed to 5.29% for the week ended Thursday, Freddie Mac reported. That’s the highest since December and up from 4.91% a week earlier.
“There’s a real risk interest rates could climb up beyond 6% or 6.5%, which can immediately shut down the housing recovery and undermine the national economy,” says Bernard Baumohl, chief global economist at the Economic Outlook Group.
Also, as a result of the increase in rates, refinancing activity fell 24%.
Real Estate Investor Coach Response:
These are interesting facts to know considering the ongoing housing slump and economic “crisis” we as a country are in. Whether the rates go up or down dramatically or slightly doesn’t really matter. As a real estate investor you can have flexibility when you buy and flexibility when you sell if you are educated enough to know how to structure a deal. Remember, properties are our “widget.” In order for us to make money on our product we need to be able to buy our inventory right. I’m going to repeat that because it is a very important sentence. We need to BUY RIGHT. How you buy a property is ultimately going to determine how you will be able to sell a property. Therefore, the better terms and flexibility and price that you are able to negotiate when you buy sets you up to be able to handle the economic “crisis” easier when you sell because you can then make it easier on someone to buy. Make sense? If not the re-read this paragraph as many times as it takes until you figure it out.
And since I don’t use banks to buy my “widgets” (you shouldn’t either) then that is why it doesn’t matter what the interest rates are doing. Remove yourself from the mindset that you have to go down and qualify for a loan to buy properties and be a real estate investor. That is the wrong kind of thinking and will ultimately set you and your business up for problems. There are too many other ways to buy, sell, flip, hold, lease, option, properties than having to rely on what the banks, rates, the economy, etc is doing. Go make your money investing in real estate the right way and let everyone else worry about those “conventional wisdom” things.
Be sure to post your comments on this article below.
To your Real Estate Investing Success,
Brian Evans
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2 Responses to “Real Estate News – Mortgage Rates Increase to 6 month high”
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HI RealEstateInvestorCoach, i am in a very
desperate economic loss at this time! personal
i hav been envolved with realestate programs over the internet! poor costley coaching! no follow - lots of payments! no personal instruction! is your program hands on approach? do you teach step by step? i have no credits cards open ! can’t join by credit card& for future monthy club payments! can i join by personal check! if you real get back ASAP!
THANKS HOPE TO RECIEVE REPLY SOON! GREG ZITO
Hi Greg,
I’m as real as they come. I”d be happy to discuss your situation to see if I can help you out. Call this number: 800-282-4653. You will speak with one of my receptionists who will take your information. Mention that you were directed by me (Brian) to call. Once I receive your information, I’ll get in touch with you personally at the information you provide.
Talk soon,
Brian Evans