As summer heats up, so too, does the political landscape with its heated words.
Historically the Federal Reserve prefers to avoid this hot bed of words. How? By not moving rates. If this holds true, rates may increase before this January. Thus now seems a good time for us to talk, in preparation for less favorable mortgage rates. Please know, once they start rising, there is little chance of rates going this low again.
Being prepared is the best way to avoid unwanted surprises.
One of the deciding issues is our GDP – Gross Domestic Product. Some fear the numbers are going negative, with worry of a second recession, while others fear inflation. For me, neither will occur, as I believe most of the numbers we read, speak to a variety of political agendas and social causes. I far prefer to see what is right in front of us, and it says, ever slow but certainly steady growth. The strong US dollar is good confirmation, letting us know the world sees us as a partner with a good future.
Here are a few interesting facts concerning our markets:
- Homes values are rising and fewer homes are underwater,
- New home construction continues improving,
- Low interest rates continue,
- Market velocity is higher in more and more markets
- Regionally, foreclosures remain a concern.
Let’s hope the Federal Reserve puts patience before politics, raising rates later, not sooner. Let’s move onto this months ‘Good, Bad, n Ugly’
The GOOD: The economy keeps growing, with inflation remaining stable. Even better, wage growth is improving across more demographics. Fortunately an accommodative Federal Reserve reflects a world in need of a stronger US economy. With this, lower rates will hold for a couple of years, though one or two bump-ups in rates, are likely.
The BAD: Public policy keeps kicking important issues down the road, while pork-barrel politics continues to divert money from needed infrastructure. This unwillingness to fix what needs repair in our infrastructure fails us, knowing the trajectory of population growth, is irresponsible to voters.
The UGLY: This month, our favorite ugly returns – our dysfunctional government. In the confusion of forgetting you and I, our House, Senate, and President are trying to pass a bill benefiting big banks and big business, leaving the middle class wondering. We will keep a sharp eye on how this might affect us and the world we live and work. We’re here for you.
Concluding though: At the end of the day, real estate remains one of our very best, long-term means of generating wealth and offsetting inflation. It can also be a source of future cash to weather events in life. Yet I believe we can help you find other tools for meeting cash-flow needs, in times of crisis. Building a safe and secure tomorrow is what we love and our first priority. Please give us a call today, for the future is soon.
Let us know how we can help.
Be well and prosper,