Happy New Year! How many of you have already broken your New Year's Resolutions? What will happen to the real estate market in 2016? What will happen to interest rates? As many of you know, in a past life I taught finance at the University of Missouri. So people have always asked me those questions. My response has not changed. IT MAY GO UP. IT MAY GO DOWN. IT MAY STAY THE SAME! In accounting, there is a saying -- there is one thing you know about a budget -- it will be WRONG!
That said, the Fed increased short term interest rates in December. Mortgage rates will not be impacted to any great extent, since it is really supply and demand interaction that determines the specific interest rate on any type of loan. If inflation were to increase then we know that mortgage rates will go up. But in the meantime, we can still enjoy historically low interest rates, at least for the rest of 2016.
HAPPY NEW YEAR! NAY 2016 BE YOUR BEST YEAR EVER!
And of course, please feel free to contact me if you have any questions or know of anyone in need of real estate assistance.