What US higher debt
ceiling means to Housing Market?
debt-ceiling has officially been raised, ending a pretty stressful and
contentious few days for the nation. But what exactly does that mean for
the housing market specifically, as well as the overall financial picture
for the general public? Itâ€™s not all great, but in some instances
fast action will circumvent any big problems. Hit the jump for the full
the most interesting for home buyers and sellers are mortgage rates. Lending standards will
likely be even stricter, depressing the housing market a bit. With rates
expected to climb .25% to 1%, anyone
looking to refinance should lock in those rates now. Same for
people buying new homes who have access to the currently-low rates. As US debt rating is
revised down, interest rates could spike. Several experts believe housing
market is near its bottom creating tremendous opportunity for long term
investors looking for shelter away from stock market into real assets in
addition to Gold (Gold is already at historical high prices & how high
could it go â€“ your guess is as good as mine).
Likewise other facets
of living style are affected as well such as, credit card rates in all probability will increase, up to
1%. Banks canâ€™t retroactively increase your rate on current balances,
but with 45 daysâ€™ notice they can raise your rate on new charges.
(The national average sits at 14.08%.) Make sure youâ€™re paying off
new charges before the following billing cycle. A credit card is
essentially a free 30-day loan, but once the interest rates set in
itâ€™s just not worth it. Car loans
are headed north as well, between .25% and .50%. On average, that could be
about an extra $144 per year.
Finally, jobs will continue to be scarce. Higher
borrowing costs for a company make the prospect of adding one more salary
less enticing. (Of course the sooner consumer confidence recovers and
spending increases, the sooner companies will increase revenue and be more
liable to add jobs.)
If you would like to
schedule an appointment with me to discuss your real estate needs &
plans, Iâ€™d be happy to schedule an appointment.
Manisha Jain, MA
Broker, REALTOR (R)*
"A Name Friends Recommend"
Summa Real Estate Group
1975 NW 167th pl, Beaverton, OR 97006http://ManishaJain.com
* Equal housing opportunity