The Fed went ahead and lowered the overnight rate another half point today. Hard to imagine this being a good move in the long run. I commented last week about the possible inflationary pressures of this decision and I was going to comment again today regarding their decision. But there is no need when you can read Dan Green over at Mortgage Reports summarize this so succinctly. Once you visualize The Fool in the Shower, it is all very clear.
After you read this one start talking to your clients. The more info you as Realtors can bring to the table the more expertise you are seen to have and the more referrals you will gather. Buyers sitting on the sidelines need to take a good long look at what rates are going to do if (when) Dan is right.
Filed under: LENDERS, POLITICAL & ECONOMIC FOLLY, REALTORS , Fed, inflation, recession
I couldn’t agree more Buyers need to be educated today about the status of prices and intrestrates. Buyers are I thiunk in the best place to buy now while rates are lower they will go up and in the lonmg term a better rate loan is better than 50Kless and one point higher.
Jim,
I agree that now is a great time. I once heard an economist say: Is it better to plant a tree today or three years ago? Today of course. Well than is it better to plant a tree three years from now or today? Today of course.
You nailed it on the head: interest rates are more important than price.