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Picture                      My name is Kirk Marchand, and I have been an agent at the Weichert office at North Bethesda (formerly White Flint -                                  Rockville) White Flint since 2010.                                   
                      I have experience with most types of transactions in Maryland, including residential, commercial, buying, selling, or renting.

                      If you are looking for a home, give me a call!
                      If you want to sell your home, I can handle that as well.
                      My website is Right Here!
                                                                                                                                                                                                                
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Kirk Marchand
Weichert Realtors, North Bethesda Office
11300 Rockville Pile
North Bethesda Md.  20852

Cell & Text : 301 602-6474
Office: 301 486-1600
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July 24th, 2019

Besides helping homeowners and home lookers, I am teaching Real Estate through the Weichert Real Estate School. Right now I am teaching Pre-Licensing for aspiring agents in Maryland; Bowie, North Bethesda, and Fallsgrove.

 

I’d like to share some information concerning interest rates, and how they can be used when considering a new home or additions to your current home. My first advice is always go see a mortgage specialist. They can tell you what you qualify for, that can be lower than the posted rates for the day.

 

All loan transaction interest rates, whether they are first or second mortgages, auto loans, and credit card rates, change daily based on several factors related to the federal government. The Treasury Department auctions bonds to finance the national debt. Another is the Federal Funds rate, what banks charge each other for loans from bank to bank.

 

Another is simple supply and demand. We saw this recently when the Fed raised its short term rate, and banks followed at first. Rates dropped shortly after this because fewer consumers were borrowing. They thought rates were going up and the number of loans applied for dropped. Banks and consumers have to take out loans for the Fed and banks to make money, so when demand slumped rates went back down.

 

As mentioned, if you need to know how this affects you, see a professional. Your Real Estate agent is not qualified to give you day to day market information. But you do need advice on the day to lock in the rate for your loan, your mortgage advisor’s job is to keep up with that information.


The two facts you need to know here are that rates change daily, and that rates are established through a variety of factors that are liquid and changing. Your agent can help you get a price that you’re happy with, and can give you general advice about where to go for information. But your agent, your mortgage specialist, and your settlement company are a team, each with different specialties. Make sure you use the resources they all provide you to complete a successful transaction. 

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My next newsletter will contain information and advice for people considering selling their home with services such as Redfin. 
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Here Are Some Other Articles That May Interest You:
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An article from 2018 about interest rates:  
6 Factors that Affect Your Interest Rates
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From June on the Moving.Com website, here is an article about fixer uppers:   Tips You Should Know - Fixer Uppers
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July 12th, 2014

The Washington area has always been a strong real estate market, even during 2009 and 2010 there were still steady home sales. Today the market is very strong, with good prices for both buyers and sellers.

An interesting part of the market are multi bedroom multi bath single family and townhouse homes around $300,000 and below. Very few of these are currently being repossessed by banks, most current repos are a year or more old. Distressed homes are being bought, often for cash, by investors looking to either rent the homes or renovate and sell for a profit.

Mortgage rates are low too. A lot of people are afraid of escalating mortgage rates once the Fed starts moving this fall or winter. I would beg to differ, the Fed can’t simply and arbitrarily raise rates.

Rates affect the lending market, and if rates go up too much, people will stop borrowing. If people don’t borrow the banks and the Fed won’t make any money, it’s as simple as that. People have gotten used to 3 or 4% rates, even much over 5% will be soundly rejected by the market. So buy or sell soon, or do both, but make sure you're happy with this most important purchase!


Last Updated   9/8/2019

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