July 8th, 2013 9:59 AM by Eric Fang
Friday's interest rate was back to level ofJuly 2010. I did one pre-approval for a client6 weeks ago for the 30 yr fixed rate of 3.5%,and yesterday's updated pre-approval was 4.625%.
Also I got a few "I told you so" emails overthe weekend. Some "experts" warned earlier thatthe refinance business will be dwindling downand how we can survive in this rough market.And I know that I will survive no matter howthe market goes. I still prepare a few pre-approvalletter for my clients each week, though the gooddeals are fewer and fewer with higher pricingand interest rate.
As we discussed earlier that 1% higher interestrate will have pressure on the house price(10%lower usually for the qualification purpose).So the RE market is indeed slowing down for somemarket, though some price range properties stillget multiple offers.
If you can read chinese, I think this following article is pretty good: