It was widely reported that last Thursday, the Federal Reserve raised the Discount Rate (the interest rate charged to member banks when they borrow from the Fed) from 0.50% to 0.75%. All members of the Federal Reserve banking system (12) supported the decision.
In its decision, the Fed cited "continued improvement in financial market conditions," but warned Wall Street that the increase was "not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy."
Do you believe them?
As anyone who lived during the 1970's gas shortages and stratospheric interest rates will tell you...be careful. Personally, 18% was the worst loan utilized during this period, but others paid 20-21%. There are many economists who project that we are going to return to that type of environment. What to do? Buy the house that you will utilize as a home for the next ten years and buy it now!
You have to live somewhere, and you are paying a mortgage or paying someone else's mortgage-your landlord. Please do not misunderstand. This is no attempt at frightening up business. I truly believe that in the next 3-5 years those that have purchased homes in 2009-10 are going to be very pleased with themselves.
Disagree? What are your arguments?
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Michael Lee
Tallahassee Realtor
Homes in Tallahassee
Piney Z Specialist
www.tallahasseerealestatetoday.com
Cortona Hills, Tallahassee's Net Zero community!
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