Wells Fargo CEO Says Housing Prices Will Keep Rising

Dated: 06/25/2013

Views: 1175

Interest rates have been on the rise the last 4 weeks about 1/4% a week for total of 1% over just 30 days ago.... what does this mean?  Does this mean people are going to stop buying? Does it mean prices are going to drop? 

Let'e be honest, rates have been artificially low for the last 4 years as the "Fed" was buying up all the mortgages on the cheap, but it had to end.   I believe that the end is better for us, it means the worse it behind us and clearer sky's are ahead. No it's not perfect, but it's what we have.  
I believe when all this dust settles mortgage rates will be about 6% ... about where they were when Clinton was president.  So if your on the fence about what to do and the higher rates a keeping you on the side line, you might want to rethink this, I don't believe they are coming back down.  
In the Biz Jorurnal this what Wells Fargo CEO John Stumpf said:
"We can't kill the golden goose," Stumpf said. "Housing is clearly healthier than it had been...Housing prices will continue going up," he predicted. "This is a bargain."

"If you were born after 1980, you think 4 percent is a normal rate," he said, noting that America's prized 30-year mortgage is not available anywhere else on earth." -
It may take a little getting used to, but the days of below 5% rates are numbered, if you are on the fence it's time to jump off.  
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Jim Cavoto Managing Broker

Jim Cavoto has been serving Colorado Real Estate market since 2000. Jim carries both Real Estate Employing broker level license & The Colorado Mortgage Origination License. As a rare "Native" of Col....

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