BREAKING NEWS >>>> Alert to Investors and those seeking financing!!

Published 08 August 09 08:30 AM | David J. Britton 

It appears that interest rates are heading up.  Fed Fund futures for the January contract now have priced in a 100% chance (premimum) of a 1/4 point INCREASE in the fed funds rate.  Worth noting is the last time that the Federal Reserve raised interest rates, which was followed by a string of additional rate increases.

So why does this matter to you?

Simply put.........every dollar you borrow for purchases will cost more.  Also keep in mind that mortgage rates and bank rates usually move AHEAD in anticipation of this number and WE ARE ALREADY seeing upticks in rates.  If you have to pay 1% more in interest rates for your purchase, it translates into almost a 9.25% price INCREASE of what you paid for the underlying asset.

All investments take many accounts into play, however the cost of the funds can dramatically alter your cash on cash return and internal rate of funds invested.

Housing numbers have been stabalizing which is being reflected in the latest 2 months of data shown.  You can keep track on CNBC, Yahoo fianance, or just keep up to date with my BLOGposts.

We are quickly leaving the single BEST opportunity of real estate investing maybe in our lifetimes.  REOs and forclosures are being swept up at record pace and now Interest rates are trending up. 

Though no one person or firm can firmly predict any future event, the analysis of data can provide an educated guess.  With that said, we beleive that there is only a couple of months remaining of this extremely favorable market for investors, followed by a gradual return to normal markets sometime mid next year.

Have a great day!

 

 

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