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purchasing power: 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)

purchasing power: 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)

purchasing power: 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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