{"id":2877,"date":"2009-06-23T18:21:38","date_gmt":"2009-06-23T23:21:38","guid":{"rendered":"https:\/\/bhgrealestateblog.com\/?p=2877"},"modified":"2024-12-30T14:46:02","modified_gmt":"2024-12-30T19:46:02","slug":"part-2-as-the-early-signs-of-recovery-emerge-dont-pop-the-cork-just-yet","status":"publish","type":"post","link":"https:\/\/bhgrecareer.com\/bebetterblog\/part-2-as-the-early-signs-of-recovery-emerge-dont-pop-the-cork-just-yet\/","title":{"rendered":"Part 2 – “As the Early Signs of Recovery Emerge, Don\u2019t Pop-the-Cork Just Yet!”"},"content":{"rendered":"
(Missed Part 1? - Click Here<\/a>)<\/pre>\n
Selling through the current economic “Yin-yang”
\n(The coherent fabric of nature and mind, exhibited in all existence)<\/strong><\/em><\/p>\n
The Yang<\/p>\n
It is interesting how there always seem to be two sides to every economic rebound. One recent effect of increased real estate market activity is a gradual increase in long-term mortgage interest rates. After bottoming out this past March in the vicinity of 4.5{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} for a 30-year fixed loan, the current and still historically low rate of 5.5{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} seems inflated to increasingly price-sensitive consumers. As a result, homes sales and refinancing are being impacted, albeit only slightly.<\/p>\n
The Yin<\/p>\n
On the brighter side of the equation, slightly higher<\/em> home-loan rates are being offset by low real estate prices as well as the $8,000 tax credit available to first time buyers. Perhaps I view things too simplistically, but why can’t the $8,000 tax credit be available to all<\/span> home buyers. This would certainly spur demand for homes at a time when increasing demand is critical to the health of the real estate marketplace.<\/p>\n
The Yang<\/p>\n
Dichotomies are the rule in a recovering marketplace such as this one. For example, the Federal Reserve will likely allow interest rates to increase as long as they do not exceed 6{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} or so. But if the Fed buys more treasury bills to again artificially reduce rates, fears of inflation could begin to foment and that could create a slowing effect on the market. After all, consumers are already concerned over a budget deficit that will exceed 12{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c}, which is the highest in over 60 years.<\/p>\n
The Yin<\/p>\n
Still, this a great time to refinance, if you are able to navigate the waters and work through everything that banks now seem to require. I successfully refinanced my own primary residence in the past few months and found that the process bore no resemblance whatsoever to the refinancing experience of just a few years ago. The red tape and details required to get the job done were absolutely horrific, but in the final analysis it was well worth the effort.<\/p>\n
The key to a full <\/em>recovery lies in several areas. They include, but are not limited to:<\/p>\n