Admin

Should you buy now before interest rates go up?

By
Real Estate Sales Representative with W.C. & A.N. Miller Realtors, a Long & Foster Co.

According to Yahoo Finance...  WASHINGTON (AP) -- To prevent inflation from taking off, the Federal Reserve will need to start boosting interest rates quickly and aggressively once the economy is back on firmer footing, Fed officials warned Tuesday.

"I expect that when it comes time to tighten monetary policy, my colleagues and I will move with an alacrity that, if needed, will be equal in speed and intensity" to when the Fed was slashing rates to battle the recession and the financial crisis, said Richard Fisher, president of the Federal Reserve Bank of Dallas.

Although I've never been able to predict the future, one thing is certain:  Mortgage Interest Rates are at a historic low right now.  Home prices are lower than they were.  Most "experts" are predicting that home values will slowly begin to rise now, and there are some indicators that seem to show that trend beginning around the country.  If you're thinking of taking advantage of the 1% up to $8,000 federal tax credit, you need to close on your new home by November 30th.  All in all, it seems that now really is a very good time to buy, if you can afford to do so.

Moshe Cohen
Valuation Solutions - Morristown, NJ
PhD

My suggestion to all who think interest rates are going up is to buy ETF symbol TBT it is a short play on interest rates. If you are right, the house you buy now will be small on you.

Sep 29, 2009 03:57 PM