KUNO Real Estate

We may get the news this weekend that may jump start the housing market.

Buyers and Sellers pay attention!!

Fannie Mae & Freddie Mac may have government intervention this weekend or in the next few days. This will definitely help the financial markets and interest rates. With the un-employment rate going up to 6% this may be the last piece of the puzzle that is needed to jump the housing market. With good news in oil continuing its decline and the dollar going up in value this in turn creates U.S Treasury purchases, like the 10 year note (which is used for mortgages). With the 10 year note yields continuing their decline as investors come back in this market interest rates keep coming down. The 10 year note has been stagnating for a couple months with yields staying around 4%. In the last week or so the 10 year yields continue their slide downward which is great for lower interest rates (6.08% for a 30 yr fixed). Buyers start looking for your purchase because if rates get down to 5% or lower, guess what will happen to home prices, yes they will go up or neutralize (depending on the market you are buying). With this possible move the government is doing with Freddie Mac & Fannie Mae this could be the bottom of the housing market.

Also we will have to see what the FED will do with the Fed Fund Rate (it’s currently at 2%) and the Discount Rate (which is at 2.5%). This will also play a key roll in interest rates!

Call our office for more valuable information on the real estate market.

KUNO Real Estate has expanded our business to custom home building and remodeling, consulting services for large and small projects.