Feds Move May Be Good For Honolulu Real Estate
March 20th, 2009 categories: The Market
You may have heard that the Federal Reserve has put a plan in motion to buy 1.2 trillion dollars of long-term government bonds (that would be $1,200,000,000,000?). The Wall Street Journal has an article outlining many of the issues.
“Clearly it’s great news for homeowners looking to refinance, and for homebuyers seeking new loans. The Fed’s announcement has pushed down long-term interest rates, and that in turn has driven down mortgage rates. Rates on thirty-year fixed loans have dropped as low as 4.5% following the news. That’s a bargain by historic standards. Get ‘em while you can.”
CLICK HERE TO READ THE WSJ ARTICLE
My crystal ball says the following might come to pass.
1. Buying power will rise as a result of low interest rates and, therefore, homes that are attractive to residents of Honolulu will begin to sell at a good pace. With Oahu’s moderate level of housing inventory, a pick up in sales could switch the market to favoring sellers.
2. The Fed is printing money at an insane rate and there is a good likelihood of inflation coming into the economy. If inflation kicks in, historically, real estate has been a good hedge. This means being in real estate could make you money if the market starts to inflate.
CLICK HERE TO SEARCH FOR YOUR NEW HOME.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
; ?>/images/MatoChiclet.gif)
