Monday, August 27, 2007
predictions by realtor in Dyersburg,Tennessee
First of all, it seems like everytime the automakers start offering 0 % financing, it usually is a precurser to lower interest rates across the board. The Federal Reserve cut the Fed Funds rate a couple of weeks ago by 1/2 point which helps the banks borrow from the federal reserve at a lower interest rate. I predict that the Fed will cut the discount rate by 1/2 point(at their Sept meeting). The discount rate is what the prime rate is indexed to and the prime rate is what affects all short term loans such as construction loans, car loans, credit cards, etc. With all the housing problems across the country, the Fed (in my opinion) will have no choice but to cut the discount rate. I know the numbers showed new home sales up across the country but I believe those builders literally had to give them away. You can expect continued bad news nationally for some months to come. I have a friend who is a realtor in Tampa, Florida and he is trying to sell his home there to move to Dyersburg. He told me yesterday their market is very depressed. I told him our market is doing pretty well.
I also want to predict that since the summer driving season is over, school is back in session across the country, and ethanol plants are being built at a record clip, gas prices will begin falling. I predict we will see gas around $2.29 a gallon within a few short weeks.
How will all these predictions affect the Dyersburg,Tennessee real estate market?
Buyers will continue to see the long term interest rates creep down and short term rates drop everytime the Feds cut the discount rate.Lower interest rates will help the homebuyers and home builders. Our market will continue on its upward climb.
I am "bullish" short term and long term for the Dyersburg real estate market.
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