Tuesday, February 25, 2014

Why Buy Now?

Why Buy Now???

      Besides the threat of higher prices in most local market as 2014 continues, there is a real threat that interest rates will continue to increase.

All factors favor higher rates:

    1.  FED buying $100 million less bonds
    2.  Improving Econony increasing Demand on Credit
    3.  Artificially restrained interest rates
    4.  Improving work economy
    5.  Increasing Long Term Bond rates

Though it is very true that the economic recovery is still fragile. Some some pundits believing it will stall out until the Federal Deficit is substantially reduced.   If such became reality, perhaps the pressure on interest rates would be relieved.

Yet as the chart below shows, projected interest rate increases are a real call to action.   Who would want to spend an extra $2400 per year or $73,000 over 30 years on a home under $250,000?

No one that I can imagine!!!  


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