Interest Rates
They have been bumping up lately. We have seen a couple of days where rates made it down to 4.5%, but haven’t been able to get any traction and bump up quickly. With the volatility of the stock market bonds are not as reliable as a barometer of rates as it has in the past. Until the market and the general public begins to understand how the Stimulus package will affect the economy in general, rates will continue to bounce around. Inflation has fallen from a high in July of 2008 at 5.6% to a little over 1.2% at the end of the year and is predicted to stay below 2.2% for 2009.
While preparing for a presentation made a short time ago, we discovered that the world money supply, that’s the total money supply, grew from $36 trillion in 2000 to $72 trillion in 2008. With money being printed at that rate, it is difficult to believe that sustained low inflation rates can continue and that usually drives up interest rates. We are near the bottom of pricing in the housing market. With low rates, high inventory levels and prices at an 8 year low, now is the time to make your move, and if you are a first time home buyer you get an extra bonus of an $8,000.00 tax credit. Call us today to see if you qualify.
Call Dan Frison 208-866-7600 or Email: Dan@IdahoAdvantage.com
