Florida real estate agent Mike McCarty with Keller Williams Realty says rising mortgage interest rates should give Marco Island home buyers a sense of urgency.
Marco Island, FL – Florida real estate agent Mike McCarty with Keller Williams Realty says rising mortgage interest rates should give Marco Island home buyers a sense of urgency. Mortgage rates have been steadily going up in recent weeks despite attempts by the Federal Reserve to use Quantitative Easing to bring rates down.
The second round of Quantitative Easing, or QE2 as it’s called, was designed to keep rates low. While McCarty says that rates are still near-record lows, they are going up, making payments on Marco Island real estate purchases go up with them.
He says the 30 year treasury bond market, which largely determines mortgage rates, has not been reacting as the Fed intended, and has been rising.
“Rates have gone up half a percent in recent weeks due to bond market fluctuations, something sophisticated real estate buyers watch closely. A half a percentage point can make a difference of hundreds of dollars per month and tens of thousands of dollars over the life of the loan, depending on the size of the loan.”
McCarty reminds his clients that higher interest rates have a serious impact on buying power, whether they are in the market for Marco Island FL condos or luxury properties.
“If the mortgage rates goes up by a percentage point, it can significantly reduce the amount of loan a buyer can qualify for. In many cases, the drop in buying power can be in excess of $100,000.”
He says that whether the Fed actions ultimately work or not remains to be seen, but many Fed-watchers are skeptical.
“We don’t know what will happen with rates in the long term, but we can say that right now, rates are going up. We’re therefore encouraging serious buyers to get pre-approved immediately and lock in the current rate before it deteriorates their buying power even more.”
Search Marco Island homes for sale:
Mike & Wendy McCarty
The McCarty Group
Keller Williams Realty
713 Bald Eagle Dr
Marco Island, FL 34145
Press release courtesy of Online PR Media: http://bit.ly/hK6tUf