It’s something not many people are talking about; especially with the sluggish housing market. But some industry gurus believe it’s very likely the Fed will have to raise interest rates to curtail the rising price of gas and produce.
I’ve been following Dr. Mark Dotzour, Chief Economist and Director of Research at Texas A&M University’s forecasting for several months now. Back in February, respected editor of Realty Times, Blanche Evans, wrote about Dotzour’s prediction that interest rates could “soar”.
Unfortunately, what he says makes sense.
A news article on the Real Estate Center’s website quotes Dotzour as recently saying
“Trucking firms, auto dealers, airlines and retailers are all suffering heavily from the high cost of energy,” Dotzour said. “At some point, the Fed will have to increase rates and increase them quickly.”
I’m not a financial professional (disclaimer there….did you pick up on that?) and am about as far from an economist as you can get, but it doesn’t take a rocket scientist to see that prices are increasing (outside of the housing industry) rather quickly and it would seem something is eventually going to have to be done to reverse that trend.
Is the sky falling? No. But if you’re thinking about refinancing or making a purchase, it may behoove you to do so sooner rather than later.
Colleen Fischesser is the Broker/Owner of RE/MAX Select in Maple Valley, WA. She has been successfully selling and marketing properties all over South King & North Pierce counties since 1990 but specializes in the Maple Valley Washington area. .She may be contacted directly at: 425-432-5400Copyright 2008, All Rights Reserved Colleen Fischesser
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