Several weeks ago when we begin discussing what we would be talking about in this month's newsletter, we decided “Enough of interest rates already!” What else on this topic could we possibly talk about?
In the blink of an eye, that all changed. On March 3rd 30 year rates were 3.76%. As of the close of business on March 31st…4.67%!!!!!!
By the way, we usually don’t use that many exclamation points as we did to end that last sentence. Historically, this is one of the sharpest short-term increases since the 1980s. As you can see from this month's graphs, even with this jump, rates are still very low on a historical basis. Without question, though, this has had a dramatic impact on affordability. Will that mean that the market will slow down? As of this moment, we are still seeing a frenzy as the inventory of homes for sale remains squeaky tight. Despite HUGH equity gains by homeowners, most are not rushing to sell their most prized possession. Until that occurs, values will continue to see upward pressure.