The price of gold is steadily going up and has increased over 20% in the last two months. Why should that concern you, if you're not buying or selling gold ? Because as the price of gold goes up, the value of the dollar goes down. It takes more dollars to buy the same ounce of gold and therefore it makes those dollars worth less. And as the value of the dollar decreases it increases the pressure on inflation. Also all the stimulus dollars floating around the economy is also increasing the pressure on inflation since most the stimulus money is new money created by the government. More money in the money supply makes the existing dollars worth less.
The Federal Reserve Board has historically reacted to control inflation by raising interest rates. Right now interest rates are at an alltime low but after the 4th quarter reports start coming in around the 3rd week of January next year and inflation rears it's ugly head then the fed will almost certainly raise interest rates. You would be amazed at how much just a 1 percent interest rate difference would cost on a fixed rate mortgage of 30 years,literally thousands of dollars. And if they raise the rate, who knows when and where it will reach it's ceiling. So if there was ever an ideal time to buy, it's NOW, while interest rates are low and all the tax incentives like $8000 for 1st time homebuyers and $6500 for present homeowners to upgrade and $2500 to upgrade your home's energy efficiency are still in effect.
Call Larry or Jo Ann Thomas at 628-2903 or 545-9249 today and let us find your next home tomorrow.
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