Tuesday, March 28, 2006

FED raises interest rates by 1/4 pt hike to 4.7 bad news for real estate in the statements looking forward

Real estate market just got bad news from the FED. This just in from the federal Reserve Board, Ben does it good for the Benjamin-Dollar. But it's comments looking forward said they may have to rates again, means that US dollar got a boost in the currency markets. The stock markets react with a down turn, and this is bad news for real estate sales. Because Mortgage rates are probably going to go up, as mentioned by the Fed.

So what does this mean for real estate agents in Seattle, and in other Hot markets? As we have said before, some slowing is going to be good for everyone, real estate in certain areas was simply too Hot. My worries of a slowing turning in to a huge supply could be very bad for everyone too. With the forecast of rates being increased in the future, I as a Seattle real estate agent have to worry.

More on what the rates will to do the real estate market in the near future. Stay tuned folks, and remember we see biased as we are real estate agents, but also know that we hold properties as real estate investments, and so we care more about our wealth accumlation from our investments than we do from our real estate transctions in Seattle or other real estate market!

Sent from my BlackBerry wireless handheld.


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