Opportunity waits for no one and that is true in today’s real estate market…
The Federal Reserve announced it would more than double the amount of money it will spend in the coming year in an aggressive effort to force down interest rates on mortgages – perhaps by as much as one percentage point – as well as other business and consumer loans. The move, which seemed to help the markets, is supposed to keep money flowing. And it has worked to lower interest rates but if that will mean a faster economic recovery, who knows? But I love the lower interest rates, since I think it can only help housing.
Fed Chairman Ben Bernanke said he sees the recession ending by the end of this year recently on CBS News’ 60 Minutes. But with most people upset over the AIG bonus fiasco, and worried about jobs, it is going to take some stronger economic indicators to get consumer confidence back. This is why I am having mixed feelings.
With the lower rates this week, there may be some changes in the economy, but will it be enough? Can we expect to have the economy recover as soon as Bernanke thinks? I believe in positive thinking, but also in being realistic. It is a great time to buy with the great interest rates and fantastic deals out there.
But where is the economy headed?
Will interest rates go back up soon?
Will someone else get the great deal that you are hesitating about making an offer on?
No matter how attractive the interest rates are, or how great the deals are, unless people feel confident in the economy -some people are not going to buy. Some will, because some people are bolder than others. But many will hesitate. That hesitation may mean that in a couple of years they are filled with regret. Since buying a home is such a major financial decision, it is no wonder with the news filled with bad news that people are scared.
But with interest rates so low, and so many great deals out there, it is hard to not suggest that you should think long and hard at doing the unthinkable and actually buying right now. Or be filled with regret in the future because opportunity waits for no one.
All I can say is, if I could buy another home today, I would. So I am not suggesting that someone buy because I stand to make a commission. I am saying buy now because it could be a great time to get a great deal with low interest rates.