The big news in the housing market is that interest rates are rising. The consensus is that 
the economy is on the mend, and concerns about inflation are driving rates up. But one shouldn’t panic yet. You can still get a 30 year mortgage for about 3 percent, which is a historic low. However, one shouldn’t wait too long if you are considering purchasing or refinancing a home.
According to CNBC, February 17th, 2021
- Interest rates are rising because of expectations for better economic growth, and they should continue to move up but moderately.
- Inflation is a fear in the market, but strategists do not yet see it as a main catalyst for interest rates.
WHY ARE TREASURY YIELDS RISING? Part of it is rising expectations for inflation, perhaps the worst enemy of a bond investor. Inflation means future payments from bonds won’t buy as much – because the price of a banana or a bouquet of flowers will be higher than it is today.
For years, yields have been ultralow for Treasurys, meaning investors earned very little in interest for owning them. That in turn made stocks and other investments more attractive, driving up their prices. But when Treasury yields rise, so does the downward pressure on prices for other investments.
Rising interest rates are not good news for the stock market.
Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.