[Don’t miss the chart at the bottom of this article!]

Waiting for home prices to fall can be costly.

The Federal Reserve has been keeping interest rates artificially low, hoping to stabilize the economy. Economists generally agree that as the deficit grows and the government finds it can no longer continue borrowing, interest rates must rise. In a recent op-ed piece in the Wall Street Journal, former Fed Chairman Alan Greenspan said:

“Long-term rate increases can emerge with unexpected suddenness. Between early October 1979 and late February 1980, for example, the yield on the 10-year note rose almost four percentage points.”

As I have said before, time is on the side of the real estate borrower or buyer. If you know anyone thinking about buying a home or refinancing the time is now! Waiting can be costly! The attached chart shows the effect of interest rates on monthly payment. Most people buy based on monthly payment not the price of the home.

Who do you know that would like to buy a home before they are priced out of the market? Please call me with their name and number and I’ll be happy to take great care of them.

Former Fed Chairman Greenspan warns http://www.johnehrenfeld.com/greenspan0225_l_719090.jpg

“Don’t Be Fooled by Today’s Low Rates”

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If Real Estate Prices go down by 2.5% and

Mortgage interest Rates increase by 1/4% you LOSE!

 

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Courtesy of
Linnea Jones. Realtor®

425-765-2211

Linnea@Windermere.com / www.LinneaJones.com

 

Chart source: http://kcmblog.com/2010/01/14/how-interest-rates-affect-your-mortgage-payment/

Image source: http://www.johnehrenfeld.com/2009/03/doh.html