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Monday, July 13, 2009

Real Estate Loans: Rates Heading Down?

Dean C. Piller by GRI Instructor Dean C. Piller
Teaches GRI Course 109 - Residential Real Estate Finance, West Los Angeles College Instructor, Mortgage Broker
View future classes taught by Dean C. Piller

We are back in the 4's again! Interest rates rose to the low 5's, as it appeared the economy was starting to turn around. As promised, inflation is sure to follow with the government’s stimulus package and printing of money.

But then something happened. The State of California is out of money and the economy is really a long way off from recovering. The result? Money flows back into the safety of bonds and interest rates go down. For how long, nobody knows. What we do know is that interest rates are historically low and property values are at or near the bottom, and there has been a tremendous increase in sales activity, with many agents reporting multiple offers and bidding wars on good properties that are priced right.

What is the moral of this story? We better get while the getting is good!

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