Present Market Conditions
As we welcome in 2006 (and wait for the fourth quarter economic numbers of 2005) many economic experts anticipate slow, yet solid, growth for this coming year. The Federal Reserve has strongly hinted that it will end its campaign to raise interest rates after one or two more hikes. Policymakers believe that the threat of inflation has “eased somewhat” according to their released minutes from this past December’s meeting.

How this Affects You (Real Estate)
The real estate market is beginning to cool off. Some of it is seasonal and some of it is an over-due adjustment. List prices for homes are being reduced, and inventory is building. However, we believe that our area will always remain within a premium and attractive price range. This is based upon a few things… our prime location; desire for outsiders to move into our area; cost to develop new housing in this area along with the lack of ground available to develop new housing. So, please do not think the worst. The sky is not falling nor is the end near. We are just getting back to a little bit of reality. It is still a great time to buy or sell your home while mortgage rates are traditionally low.

How this Affects You (Mortgage Loans)
It is difficult to calculate which direction the economy is heading. The hurricane disasters made it very difficult for economists to gauge the current economic numbers. We do know that the Federal Reserve will continue to push the needle on the federal funds’ rate with an additional hike expected prior to early spring. This will be of particular concern to you if you have an adjustable mortgage loan or an interest only loan that is set to come to term or begin adjusting. This is the time to consider refinancing to another interest only loan (5, 7, 10-year term) or obtain a fixed loan.

Please give us a call or drop us an email if you have any questions concerning real estate and mortgage financing. We would also like to show you how we can save you money by being the one stop for your REAL ESTATE AND MORTGAGE NEEDS. Remember Summers & Scurich Real Estate and S & S Mortgage.

Thanks,