Hackney's Houses

I've been running into this a bit lately, so thought I'd write briefly about it.

We've been hearing a lot about the "Fed Cutting Rates" in an effort to stimulate the economy.  You may note that when the Fed does cut rates it doesn't always have a correlating effect on mortgage rates.

Why?

Well, because they are not the same thing.

The Fed rate is the rate at which the banks borrow money, NOT the rate at which the banks loan money.

The typical consumer may not realize this and inadvertantly be waiting to make a real estate move in the hope that mortgage rates will drop.  Rates may drop, stay the same, or eventually go up, but it won't be because Fed is cutting rates. 

If you've been waiting because of this reason, then I encourage you to take a good look at this market because it is AMAZING!  Seriously, market opporunity like what we have RIGHT NOW only comes around every 15-18 years.  Those that invest in real estate in the next year are going to position themselves nicely for the years to come. 

Remember the stock market around 2002?  Everyone thought it was tanking and didn't pay attention to history. 

These markets have been and always will be cyclical.  Don't get caught 5 years down the road from now saying "If only..." 

Never in history has a country all become wealthy together, but they have all become poor together.  When it comes to investing in the stock market or real estate, don't negilect what history has taught us.  And this may mean going against the media and societal trends. 

Swim upstream!!