Updated 01/08/2025
Interest rates have gone up a full 1% over the past few months. In spite of that, since mid-November real estate sales are actually up. Click Here To See Current Interest Rates
I do believe interest rates will drop later in the year due to price drops in energy causing price drops in other areas such as produce. This will put a damper on inflation. Interest rates were raised by the Federal Reserve Bank “to slow the inflation” that was caused by the over lowering of interest rates by the Federal Reserve Bank over the previous few years. An even bigger factor is our over 36 trillion national debt. It seems inflation always follows national debt. Click here to See Government Borrowing In Real Time. You won’t believe your eyes!
I speculate, for banks to stay in business, it’s likely, more creative loans will be returning such as low documentation (on income) qualifying loans, ARMs (adjustable-rate mortgages) that offer a discount for the first few years to help people qualify, 40 year mortgages and even interest only loans, may in part or all come back! (Just like the good old days of the early 2000’s) or simply lower interest rates.
If you have any questions, feel free to call me. Alex Schauffert 707 332 8301
If you’d like to receive updates via email, please join the Real Estate Trends List now and I’ll send you the next update.