So Where Do We Go From Here?
Posted June 18, 2008 11:07 p.m. EDT
So where do we go from here? Well let’s see… Interest Rates are still very attractive – it has certainly become a buyers’ market in many areas across the triangle and country. The Federal Reserve has cooperated with us so far year to date, but now seems poised to raise rates perhaps at their August meeting in an attempt to strengthen the dollar and hold off inflation.
The European Central Bank seems to be delivering a financial model in which the Federal Reserve may be following… stay tuned for more on that story. But in the meantime, we still have a housing industry that has been battered nationally by declining prices, increased unemployment figures and a massive number of foreclosures. Another tough pill to swallow if the Fed begins making it even more difficult to buy a home by increasing the cost of money.
But then again we need a stronger dollar to fight against ascending cost of oil – and to hold off inflation. So where do we go from here? Stay tuned as this story is only just beginning – and it WILL become very interesting in the weeks and months to come.
Jeremy M. Salemson
Corporate Investors Mortgage Group, Inc.