June 22, 2013
The Federal Reserve has been artificially deflating interest rates to stimulate the housing market. Now that the economy and jobs are on the road to recovery, they are pulling back on the reigns a little and allowing a rise with interest rates. As we all know the road is still rocky and anything can throw us back into an economic slump. If that happens, I’m sure the Feds will act again.
So what does this mean for you? For those that are looking to purchase a home, it probably means a small increment in your monthly payment. If your budget is already tight, it could be the difference of affording a home or not. With rising home prices, the pinch can turn into a slap. Hopefully all it means is that you will need to lower your expectations and buy a home that doesn’t give you everything!
It’s hard to compromise your expectations but you’ll be glad you did! The housing market is still undervalued with no place to go but up. In a few short years, we may realize some appreciation. When this happens you’ll feel like the smart person that you are and begin your search for the home that does have everything! For more market information, go to www.HotWireToTahoe.com or just call me at 530-314-9008.
December 6, 2011
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