Minnesotans have weathered a winter for the ages, meteorologically speaking. Cold records and snowfall records abounded all over the state and the Twin Cities Metro area even earned the dubious distinction as the coldest metro area in the nation!
Now here we are at the end of March and, at this writing, there is snow in the forecast for later on today. Sigh.
Unpredictable weather has generated its own multi-billion dollar industry and is the topic of many of our conversations. But what about unpredictable markets?
No less than the weather, the financial and real estate markets can deliver some impressive forecasts as well as unpredicted results!
This winter had its affect on the local real estate market, no doubt. The deep freeze and the deep snow drove people out of the area for winter vacations in record numbers. The weather has also had a slowing effect on the emergence of our annual ‘spring market’. We are seeing the real estate demand was offset by the weather but not eliminated – only delayed. This compressed demand seems to be putting a bit more ‘spring’ into both the real estate markets and the economy as a whole as we March toward April.
Mortgage rates remain in the mid 4% range for a conventional 30-year fixed mortgage. The general consensus for mortgage rates is that they will remain steady as long as the Federal reserve continues their accommodative policy. Once the Fed chooses to remove their support, rates are expected to rise. Global unrest, as seen recently in the Ukraine, has had the effect of driving risk averse investors into the bond markets. This, in turn, has led to temporary improvements in the mortgage rates. We will continue to see these short-term opportunities as events that create uncertainty flare up around the globe.
For more information or to get pre-approved, contact us!
Melissa Nelson & Paul Basil
NMLS 452480 & NMLS 452479
Branch Manager, - Maple Grove, Minneapolis Uptown, Prior Lake, Spring Lake Park
Megastar Financial Corp.
“America’s Most Trusted Mortgage Company”
Branch Main: 763-999-7999
Basil/Nelson Main: 763-231-2410