4.5% interest rates should clear the matter up: Part II
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A perfect bookend to the week was Friday’s Wall St. Journal article: ‘Lower Rates Help Sell Houses, but Market Faces Broader Ills.’ These parts in particular (regarding the Treasury plan to lower rates to 4.5%):
‘People are going to see what this does to their mortgage payment, and they will be kicking themselves if they don’t jump in and buy,’ said David Romero, chief operating officer of Century 21 Award in San Diego.
No, I don’t think so.
‘Nine of the top 10 issues hurting sales have to do with poor consumer confidence,’ said Larry Sorsby, chief financial officer of builder Hovnanian Enterprises Inc. in Red Bank, N.J. ‘You are being bombarded by bad economic news, and people are in fear of keeping their jobs.’
No, I don’t think so.
Lowering rates could help establish a floor under home values.
Here in Southern California? No, I don’t think so.
--Lauren Beale
Comments? Thoughts?
