If you’ve been on the fence about buying a home in the Tampa Bay area; you’ll want to read this news article about interest rates.
It’s hard to believe in today’s economic environment, but the overall Bond market, including Mortgage Bonds, are contending with the “I” word this morning…inflation…thanks to Fed member Frederic “Uncle Freddy” Mishkin.
Mishkin appeared on CNBC this morning, saying that “inflation could come to the forefront given all of the government programs”, and “once the economy recovers, liquidity must be taken out of the markets”…meaning, the Fed may need to rapidly hike rates down the road to control the potential of inflation.
Although rates are very attractive now, the picture may be quite different as we head towards the summer. Oil prices may be on the rise as we approach the summer driving season, some of the economic stimulus might begin to take hold, corporate cost-cutting measures could start to bear fruit, and the big enchilada…the Fed will no longer be a buyer of Mortgage Bonds. These are all ingredients in a recipe that will undoubtedly result in significantly higher interest rates this summer.
…… this wonderful opportunity at hand will not last forever.
We will be holding our next Tampa Real Estate Meetup Investor group, on Feb. 11th, 2009. We will address many current market conditions in the lending industry
Click here to see details