OK, all you first time home buyers, do you think things are going to get any better that they are right now to buy the home of your dreams in Sonoma County. Well let me straighten you out right now. 30 year mortgage rates are near their all time lows. Today we can offer a 30 year fixed mortgage for 5%. What are the odds of in a couple of years that rates are going to be this low. The current administration is bound anddetermined to spend us out of a recession which may have ultimately averted a depression but some how, some way, some one is going to pay for it. The Chinese are probably going to get tired of buying our debt. The US citizen isn’t going to buy enough savings bonds to make up the huge deficit s we are amasing so that can only leave one possible solution and that is inflation. The Dollar will devalue and the 13 trillion dollars that we owe won’t really seem that bad if the dollar is only worth half of what it is worth today. The only recourse or protection that you have as a citizen of the United States against inflation are commodities and Real Estate, especially Sonoma county Real Estate and Healdsburg Real estate in particular, is some of the finest Real Estate in the world. They just aren’t making any more of it. When inflation hits, and my prediction is that we will start to see the first inklings in the 2nd quarter of ‘10, it will be too late. The bottom will have passed andnow your dollar that you are trying to spend will be worth less than it does today. Real Estate prices will rise because of two things…demand and supply. People like me will have spread the word and the bandwagon will start to get crowded. Supply will diminish because of the demand. Interest rates are the only thing that could slow the process and as soon as the first signs of inflation appear on the horizon the Fed will begin to raise interest rates. I would expect to see mortgage interest rates in the 8’s by the end of ‘10. That isn’t really all that bad historically, but compared with 5% think about how much less house you will be able to afford. See my other posts on home affordability.
So what are you waiting for? Rates are great and the home prices are the lowest they have been in 8 years. Oh…and one more thing. The govt is giving away $8,000 if you buy a house before the November 30th deadline. If you have any questions or concerns regarding Mortgage loans in Sonoma County or elsewhere please visit my other website at www.myprospectmortage.com/wconrad or email me at hunt.conrad@prospectmtg.com.
