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interest rates: Deferring a Home Purchase Could Be Costly....... - 12/03/10 05:15 PM
I recently discussed the historically low interest rates we currently experience and how, from a leverage cost perspective, this is a wonderful time to be a buyer of real estate (not to mention all that inventory to choose from). I promised a follow up article to actually illustrate the impact small changes in interest rates have on a buyer’s purchasing power. So here it is.
The spreadsheet to the left (click the image to see a full size version) provides a simple illustration of the impact interest rates (even small changes) have on a buyer’s capacity to buy. The top half … (2 comments)

interest rates: Why Didn't I Buy Google back in ......? - 11/30/10 11:52 PM
How many people, yourself included, have heard/said the oft repeated refrain "If I had only bought XYZ back in the day, I’d be rich now" or words to that effect? I don't know if I'd be rich but I do know I would have at least a 4-bagger if I had purchased Google stock back in 2004.  I have a feeling the current real estate market will be one that 10, 15, 20 years from now people will replace the word Google (or IBM, CISCO, or Berkshire Hathaway) with 'real estate' or 'my home'.  Why?  We have a unique confluence of … (3 comments)

interest rates: A $4 Trillion (yes a "T") Hangover - 07/20/10 11:53 AM
As many of my clients and friends know, I am a data geek. So be prepared for what is about to follow (and for those of you with insomnia – I may have found your cure).
There was an article/analysis done by Dhaval Joshi, chief strategist for London based hedge fund RAB Capital. I found it referenced in Barry Ritholtz’s blog article on July 15. WARNING: lots of data to digest in the linked article. Granted, I am generally suspect of data analysis put forth by hedge funds (there always seems to be an ulterior motive) but in this case, the … (0 comments)

interest rates: Interest Rate Impacts on Purchasing Power - 06/26/10 08:53 PM
There is a good deal of discussion regarding the current status of the real estate market. Has the market bottomed? Have inventory levels stabilized? What impact will foreclosures and short sales have on absorption rates going forward? Along with the always popular, what are interest rates doing?
I recently had a conversation with a buyer client who expressed his perspective that our current market hasn’t yet "bottomed" and that there may be another 5% of downward price correction still to occur. After our conversation, I decided to run some numbers (yes, I’m a devout data geek) and see what the correlation … (2 comments)

interest rates: Is an improving economy good for real estate? - 10/23/09 04:08 PM
This may seem counter-intuitive, but it is possible for homebuyers to be hurt if the economy improves. Of course, an improving economy has many positives for the housing market as a whole: decreasing unemployment, stabilizing household incomes and increasing consumer confidence levels. However, an improving economy also brings with it the likelihood of higher long-term interest rates.
One of the toughest jobs facing Federal Reserve Chairman Ben Bernanke is how to time any interest rate adjustments as the economy improves. Raise rates too soon and he risks killing the recovery. Wait too long and he risks significant inflationary pressures.
The interest … (0 comments)

 
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Craig Frazer, Davis & Salt Lake County Real Estate, RE/MAX Metro

Farmington, UT

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Address: 110 N. Main Street, Bountiful, UT, 84010

Office Phone: (801) 699-6046

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