Friday, November 16, 2007

Taken a look recently at mortgage interest rates? Pretty high, aren't they.

Well, no, not really. They seem high to us now because we can remember that they were a bit lower two years ago. But if you look at the longer term, back through the 1980s, interest rates are very near their historic lows. A graph shows rates falling and falling all through the '80s and '90s and just the slightest little up-tick this last year.

Now is the time to buy! Prices are falling in the big markets, and stable or drifting down in smaller markets while mortgages are cheap. BUY! This is the classic buyers' market that everyone always wants to get in at the beginning of.

Sure, prices may continue to fall all through next year. But will mortgages stay low? I doubt it, not with warning signs of inflation appearing. The FED can try, but they can not control the natural level of prices and interest forever. The dollar is getting cheaper, prices of goods are rising, and eventually interest rates must rise.

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