Wednesday, March 19, 2008
Pulling out all the stops!
The stock market is up...interest rates are down...The Feds want you to start spending money! They significantly cut rates for the sixth time since September yesterday! They're pulling out all the stops to boost consumer and Wall Street confidence. While rate cuts sound good, people looking at buying real estate need to prepare for what may happen. Fed cuts directly effect the falling dollar...Fed cuts are inflationary. Oil prices are up, gold prices are up. As a result, mortgage rates inevitably go up because mortgage rates are based on fixed income investments, long term bonds and mortgage backed securities. If you are looking to buy a home and get financing, please consider this: Home prices have to fall over 10% on average to make back what you lose in monthly payments if the mortgage rate increases just 1%. There are some great housing buys out there right now! Real Estate is a LOCAL market, and it always has been! Written business in Naples was up in February. According to The Naples Area Board of Realtors statistics, pending contracts rose 10.6% last month, breaking a 28 month downward trend! The best barometer for determining the current temperature in any housing market is pending sales! Stop reading national publications that report real estate with a broad stroke. Instead, let's take a good hard look at what is for sale in Naples and take advantage of the amazing opportunities out there!