The Fed Leaves Rates Unchanged
Posted on June 28, 2007
Filed Under Real Estate Investing |
No surprise there, there is no chance of a rate change before late in the fourth quarter and only a small chance then.
But, change is on the horizon.
Mortgage rates are starting to inch upwards. That is no surprise to readers of this blog, my newsletters and especially Field Guide members but it seems to be a surprise to some in the media.
This is good news for real estate investors and bad news for speculators. For flippers who are too thin financially to fund their deals without loans it is especially bad news.
But, for really serious investors the upward pressure on mortgage rates is great news.
Why you may ask?
It reduces competition in buying and funding. Investors who have been positioning themselves based on the expected conditions this summer are about to have the kind of fun only a kid in a toy store with Bill Gates Platinum card can experience.
It has been a buyers market for a while, but it is about to get better.
I have already seen a ten-fold interest in wraps, seller financing and sub2s over last year and I’m pretty sure the rest of this year is going to dwarf that.
Have you been preparing?
Are you sitting on ready cash, private sources of funds and lines of credit?
Do you have the tools you need to accurately value a property six to twelve months from now?
If you you have, you are in for one helluva great ride?
If you haven’t, please get out of the way and let the big dogs through.
Comments
4 Responses to “The Fed Leaves Rates Unchanged”
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You must be one of those greedy profiteering assholes who make it impossible for people like me to afford a decent place to live!
I work two jobs and can’t save up to buy anything decent and my rent is going up again the first of next month.
There needs to be some kind of law protectng the public from scum like you.
Life is all about choices, Anony
The ones you have made have put you in the place you are.
I’m not one of those profiteering assholes anonymous, but hopefully with some practice and hard work ,I will be just that type of asshole oneday.
Anonymous, investors, like the one who is probably your landlord, are not the ones who drove the property values up. Part of it was driven by speculators sure, but the speculators (flippers) were selling to someone. That someone were, in many cases, the sub-prime borrowers who shouldn’t have been approved for a loan in the first place, much less the ones they were given.
I know it is popular in this country right now to try to blame others for ones own problems but if you can’t afford decent housing then perhaps a trip to a mirror will help you find who is to blame.
newbie, we all started at square one. How you proceed is all up to you. It isn’t always easy, but I believe it is critical to have real estate as part of a well diversified investing plan.