Golden Homecuffs

Home buyers are feeling a bit like Hannibal Lecter, what with homeowners handcuffed to low mortgage rates.  A recent Wall Street Journal article by Nicole Friedman, pointed out that the reluctance of these homeowners to sell differentiates the potential downturn in housing from other periods of rising interest rates.  This idea of going from a historically low interest rate to a much higher one will most likely stunt the supply of homes for the near future.  As of March 31, nearly two thirds of primary mortgages were at rates below 4%.  For investors, the net effect could provide an opening for builders, an opportunity for home remodeling, and possibly dull the Fed’s attempt at to slow inflation.  Moral to the story, interest rate moves, both up and down, are not without unintended consequences.

Inspiration

“Open your eyes, look within.  Are you satisfied with the life you’re living?”
-Bob Marley

“The lack of money is the root of all evil”
-Mark Twain

“Success is the ability—to go from failure to failure—without losing your enthusiasm.”
-Winston Churchill

“It’s what you do in the present that will redeem the past and thereby change the future.”
-Paulo Coelho

Inspiration Archive

Disclaimer

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