Recent leaks among authorities at the Federal Level have been initially ignored but are now appearing to have some truth.
The first indication was simply that: “Mortgage Interest Rates” will be pushed UP very suddenly on a pre-announced date as much 6% bringing the rates into double digits.”
This alarming news was initially ignored as being so preposterous that it didn’t seem newsworthy . . . until the “Why?” of it was revealed.
- Why not let the market find it’s own rate? The fed would remove all artificial rate lowering mechanisms with the flip of a switch.
- By announcing the date of this 30 days prior to flipping the switch, the theory is that it would motivate home buyers to BUY NOW so as to get the now under 5% rate (rather than the 10%+ rate 30-45 days later)
- The goal is to significantly shrink the Inventory of houses for sale in one fell swoop.
- Bank and large asset Management Companies will know the date before hand so they can (will) release virtually ALL of their foreclosure inventory before hand to FLOOD the market with houses.
Critics of this plan say that House VALUES will tumble and that this would be an egregious mistake with draconian consequences.
Proponents hold strong to the notion of “Belief in the strength of Capitalism and market dynamics” . . . and make the point that it’s time to remove the artificial barriers and allow the macro-economic cycle to run its course and go ahead and allow inflation to happen so as to open the door for Growth . . . which would then lead to prosperity . . . a projected 5 year cycle.
As of the writing of this blog post April 1, 2012, the author believes (based on information from reliable sources) that the official release date will be inside the next 30 days . . . Therefore, Home Buyers, Sellers, investors with even the slightest inkling of purchasing a house any time in the next 5 years should take action NOW.
Getting the process started is as simple as contacting your Local Real Estate Sales Professional IMMEDIATELY to get the process rolling.
If you’re in Middle Tennessee, I and “The vital Few” agents of Pareto Realty are up for the challenge . . . we are poised and ready to help you complete your purchase/sale before the Fed flips that switch.
DO NOT let this window of opportunity close before you take action.
Looking forward to serving you.