How Does Fed Quantitative Easing Tapering Affect Interest Rates in Utah

This Week our guest Ron Pippin Covers…

      • How mortgage interest rates are determined
      • What the Fed’s quantitative easing actually is and what it does
      • How quantitative easing affects interest rates
      • What we expect interest rates in Utah to do over the next 12 months
      • Much more…

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Video Transcript
Hey, this is Ron Pippin, loan doctor, guaranteedRate mortgage. Now, you may have heard the terms quantitative easing and Fed tapering because they’ve been in the news a lot lately. So what do these terms mean, and how can it affect you? Well, in normal times the Fed will cut interest rates to stimulate the economy. During this recent financial crisis, the Fed was forced to cut rates to basically zero to get the economy going again, but that wasn’t enough, and since they can’t cut rates below zero, the Fed used some new and unusual tools to stimulate the economy.
Now, one of those big tools is called quantitative easing, which is the purchasing of government and mortgage bonds in an effort to keep rates low and help stimulate that market. Now, they’ve been buying bonds at the rate of $85 billion per month. — How much is one billion? A billion months ago the Internet belonged to the dinosaurs. A billion minutes ago the Roman Empire was flourishing.—Which has helped to push interest rates to all-time lows and stock market to all-time highs. Now, recently the Fed started scaling back the buying of their mortgage and treasury bonds by reducing the purchases by $10 billion a month, and this is what they call tapering because they are tapering back their purchases.
Now, how does that affect interest rates? Well, in the past anytime the Fed has stepped back, interest rates actually pushed higher, but then they settled back down. Now, the question remains will interest rates move higher as the Feds taper their purchases? Well, experts believe that interest rates will move higher, and they did when the Feds first started their tapering. However, interest rates have since moved back down. Will they continue to hold? That’s the million-dollar question. Personally, I believe that interest rates will eventually follow the economy and will rise as time goes on. As the economy improves, interest rates are going to go up.
Now, other experts seem to agree that interest rates will be higher towards the end of this year as seen in this chart. Now, if you have questions about home financing, call me. I really can help you. If you have questions about buying or selling a home, now is the time before interest rates move higher. I would suggest calling Joel and Ann Zieve. I have been extremely impressed with their professionalism and how proactive they are compared to so many other agents. Give them a call, really. They will go over all your options with you. This is Ron Pippin with guaranteedRate. You can reach me or text me at 801-628-7667. Make it a great day.

How To Get Ready For Showings Fast in Utah

This Week I Cover…

      • March, 2014 market update
      • Sellers: Preparing for last-minute showings
      • Buyers: How to leverage the little time you have when viewing a new home for sale
      • Shadow Valley (Ogden) home for sale
      • Layton home for sale with main-level mother-in-law apartment/suite
      • Much more…

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Want to know what your house is worth in today's market, find out now! Yes, it's free!

Video Transcript
And as we’re moving into the middle of March, we can see the market is heating up with new listings jumping up there. We also have new solds on an upward trend, and for now prices are holding steady, but I expect as we get more into the spring and summer market, we’ll see an increase there like we did a year ago. So now is a great time to be out there buying and selling. So let’s give you some great tips on how you can win as a buyer or a seller during the showing phase of the process.
Well, let’s talk about buyers. The first thing that buyers can do to help them be productive during the showing phase is to first get pre-approved. When you have that pre-approval letter, you know that you don’t have any issues with financing, and you’re ready to go shopping. You know your price range, and when you present that letter to a seller with your offer, it’s like giving them cash because you are ready to go.
The second most important thing a buyer can do is drive by the homes first before you set up a showing. That way you can check out the neighborhood, and you can check out the yard, you can check out the outside of the home and make sure when you pull up in front of it to see the inside, you already know it’s a home you would love to live in. And the third thing that a buyer can do to make his showing period productive is to look at multiple homes on the same day. That’s a better use of your time, and it allows you to better compare features from home to home when you are seeing them back-to-back.
Well, now let’s talk about what sellers can do to make the showings most productive for them. Sellers, of course, have the challenge of living in the house most of the time at the same time we’re trying to show it and sell it. So some great tips to make it easy to get ready for short-notice showings is to always hang up coats and book bags when you come in the door and have the whole family do the same. Have everybody take off their shoes at the door so they are not tracking extra dirt through the house, and have a drawer designated in the kitchen where you’re going to throw the keys and paperwork and all that miscellaneous stuff that accumulates on the countertops. That way they are always clean and ready to be shown. We have a lot more great tips for you too, so get a hold of us, and we’ll give you our sheets of great tips for showings.
Well, let’s take a look at some new homes on the market. This first home is in the popular Shadow Valley neighborhood in South Ogden. It’s over 4,500 square feet, four bedrooms, three baths, three-car garage, and gorgeous finished throughout. Lots of great living space here that you can use according to your lifestyle and lots of great updates like granite countertops, new furnaces, new air conditioners, and more. This is a well-maintained home, and you want to check this out while it lasts.
And let’s take a look at another one. This is a great home in Layton; 7 bedrooms, 5 baths, and a full mother-in-law suite on the main level, so mom can have single-level living right on the main floor. Mom’s apartment has its own kitchen and its own laundry room and lots of great finishes just like the main home. There’s two fireplaces to cozy up to, and you’re on almost 0.4 acres at the end of a cul-de-sac, so great space inside and out. Come check this one out today.
Well, that wraps up this week’s market update. Feel free to give us a call, a text, or an email if you need more information or have questions on anything, and remember that we’re here to help you buy a home, sell a house, or invest in real estate, so refer us to all of your friends and neighbors, and we’re happy to help them too. Until next week, keep living smart.

So You Want To Buy A Home – Making Sense of How To Get A Utah Home Loan with Ron Pippin

How to Get The Best Deal on a Utah Home Loan – Guaranteed Rate Lender Ron Pippin

Special Offer: Mention this show and get a $100 Home Depot Gift Card (when you close on your new home with Ron)
Ron Teaches Us…

    • The HUGE difference between a pre-approval and a pre-qualification
    • Does get pre-approved really ding your credit, how much and for how long?
    • How do I get a seller to pay my closing costs?
    • How are interest rates determined?
    • And much more!

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How To Save Money On Insurance in Utah

How to Make Sure You Don’t Loss Everything over Something That’s Not Even Your Fault- Allstate Agent Brian Weller

Special Offer: Mention this show and get a $10 Gift Card When Requesting Your Next Free Quote
Brian Teaches Us…

  • How to save money on insurance each year
  • The main purpose of insurance
  • Why your neighbor pays less for his insurance than you do
  • Why the insurance for your teenage driver is so high
  • How the cost of insurance is determined
  • And Much More…

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How To Sell My Utah Home Fast

Secrets to Selling Your House for the Most Money in the Shortest Time – Interior Designer Carol Fallon

Carol Teaches Us…

  • Staying for a few years and don’t want your kitchen to be dated?  Here are some great tips.
  • Tips for doing a little to increase curb appeal a lot (got to get them in the door, right?)
  • Her 3 biggest bang-for-the-buck tips to do inside (less buck than you think)
  • What to de-clutter (and why) and where to put your stuff.
  • What to do about pet smells.
  • And Much More…

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