Confirmed: More Rate Hikes Coming
A: New Fed Chief Ben Bernanke's first meeting with Congress wasn't a big surprise to the Digs man! For those who read my macro-economic posts in the INTEREST RATE section, you shouldn't be surprised either!
Few would argue that with a fed funds rate of 5.00%, we are at 4.5% now, mortgage rates will be higher than they are now and housing prices MUST come down to compensate for affordibility.
Bernanke on Housing: "... a leveling out or a modest softening of housing activity seems more likely than a sharp contraction ..."
UrbanDigs Says: If you are in the market to buy keep in mind that there now is slight time pressure on you since rates will be going higher over the course of the next 3-6 months! If you are in the market to sell, keep in mind that you may have to lower your asking price as rates begin to rise! Sellers who have been waiting to list their property for sale should probably consider listing sooner rather than later as buyers face higher rates down the road!
~ Bernanke sees more hikes coming