You Better Buy Or Sell Now!

Here is an email I received today from Dirk Zeller who is one of the top real estate coaches in the world. It looks like interest rates are going to be going up in the near future.

"As I said a few weeks ago, interest rates will be rising this spring. I predicted that we will see them north of 6%. In a recent article, Mark Zandi, Chief Economist of Moody’s, was quoted extensively for the same reasons I listed a few weeks ago because of a WSJ article of September 24th. That article outlined the Federal Reserve’s plan to stop purchasing the mortgage-backed securities by March 2010. Mr. Zandi and I have raised the same conclusion that interest rates will increase this spring significantly. Mr. Zandi and I have been joined in our thinking by the analysis at Barclays Capitol that interest rates will be over 6% by the end of March."

"The time to buy and sell is now before the interest rate increase takes place. The 1% change is significant in terms of loss of buying power or increase in payment. For example, on a $350,000 mortgage the 1% would be an increase in monthly payments of $300 or a loss of buying power of $60,000 to keep the same payment. The additional interest, if your client owned the home for 10 years, would be $31,000 or $108,000 more paid over the life of the loan."

Posted By: Luke Bouman

Posted On: 10-28-2009 @ 2:52:03 PM GMT