FSBO BLOG

June 4 (Bloomberg) — Fixed U.S. mortgage rates jumped to the highest level this year, signaling the Federal Reserve’s plan to lower borrowing costs has stalled.  The average 30-year rate rose to 5.29 from 4.91 percent a week earlier, Freddie Mac, the McLean, Virginia-based mortgage buyer, said today in a statement. The last time the rate was higher was Dec. 11, when it was 5.47 percent. The average 15- year rate rose to 4.79 percent from 4.53 percent

The National Association of Realtors today, June 2nd, reported its seasonally adjusted index of sales contracts signed in April surged 6.7 percent to 90.3. It was the biggest monthly jump since October 2001. The mortgage markets are starting to see pressure to raise interest rates mainly because of the massive Federal Goverment borrowing. Banks are in better financial shape and are reluctant to lower the price of their REO properties. You better hurry if you plan to take advantage of low interest rates and low house prices. Remember what I wrote on March 12th, 2009: “FSBO.com predicts the bottom in housing sales will be in the 4th quarter, 2009, as last minute buyers take advantage of the 1.tax credit expiring 12/31/09  2.low interest rates  3.depressed housing prices”