Interest Rates update January 2012

Greetings and Happy New Year!  We thought this was worth passing along. One of our lenders, Michael Deery, that we work with sent me this.  We do believe rates will be going up in the coming year or two.  We don’t know when or why.  This guy below has his thoughts on it.  If  any of you are considering buying, it is a good idea to take advantage of the current low rates.  We would be happy to put you in touch with one of my lenders to get you pre-qualified and better understand what you can afford.  We are available this week and this weekend to show any properties if any of you are interested.

As always, you can search any homes on the market on our


From my lender-

"I listened to a mortgage bond trading expert discuss the future of interest rates today, he is absolutely convinced that 2012 will be known as the "Should've" year for purchasing a home. He predicts rates will probably reach 6% by the end of 2013! Why?..well eventually all the funds parked in the US right now because Europe is a mess (which is driving down rates) will leave, thus automatically taking rates higher. How will this affect
buyers? When rates increase by just 1% a buyer loses 10% in affordability or purchasing power, or when rates go from 4% to 6%, a buyers payment increases 20%, which means a buyer will need a 20% reduction in price to match the same payment they can get today!"- Michael Deery


John Finley, Broker

Del Mar Realty Associates

832 Camino Del Mar, Suite 3

Del Mar, Ca 92014




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