Historical Benchmark Crossed
The WSJ reported that the DOW Jones Index crossed 16,000 today for the first time in history. Investors were encouraged by the strength of overseas markets. Another factor that has boosted investor confidence lately is the belief that the Federal Reserve will continue its $85 billion a month bond buying practice.
The note on the 10 year yield remained relatively flat at 2.69%. Mortgage backed securities, which often correlate with the 10 years notes, were up as well. When MBS pricing goes up, interest rates on mortgages fall.
What Does this Mean for the Local Real Estate Market?
In the Arlington and Washington DC Real Estate market inventory continues to remain low and interest rates still remain in rarely seen territory. News of a stronger economy would create broader confidence in the market. All of these factors point to a market that will probably not soften, but actually strengthen. “We are still seeing multiple offer situations and price escalation,” said local Arlington real estate agent, Dan Lesniak. The good news for buyers is that there is still time to get a great home and lock in an unbelievably low interest rate.