Listing Courtesy of KELLER WILLIAMS REALTY
The way the media treated last week’s federal funds rate announcement by the Federal Reserve Board was a convincing demonstration of how much importance is placed on that singular piece of the financial puzzle. That rate may not be directly tied to Lewes mortgage interest rates, but since it determines lenders’ borrowing costs, its effect is considerable.
For many years now, Lewesmortgage interest rates have been comfortably nestled near the bottom of their historical range. Many Lewes homeowners have enjoyed the resulting low monthly payments on their mortgages. Lewes home sellers have likewise benefitted from home loan interest rates that make their properties more affordable than would otherwise be the case.
Real estate repercussions are a major part of the reason that the Fed’s announcement, which came midday last Thursday, had the national media holding its collective electronic breath. With ten minutes to go, one cable network talking head could add little illumination. “Wall Street will be watching the announcement very closely,” was her understatement. Channel flipping with five minutes to go, viewers found the streaming banner at the bottom of one network trumpeting BREAKING NEWS…BREAKING NEWS… before the fact. On CNBC, “the most highly anticipated announcement in years” was awaited by four commentators who had the unhappy challenge of predicting the decision mere seconds before the fact. Above the ever-moving streams of real-time data (oil was down, the stock markets up) panelists chattered about China (“it’s big and mysterious”), inflation targets (“missed again”), and optimism (“a rate hike won’t hurt the economy, it will help”). Only if the Fed “saw something down the road,” it was agreed, would they not raise rates. Then, just 5 seconds to go…then-
The Fed left rates unchanged.
Citing concerns over global this and financial that, the Fed said they were going to be monitoring them. The economy expanded at a moderate pace, and housing improved moderately, they said. But since global conditions might cause trouble...
The media’s excitement level flat-lined within minutes. “The markets are not panicking,” said a gentleman in a snappy suit. He looked irritated. “I blew it,” said another, who moments before had thrown in with the majority predicting a rate rise. “They cited uncertainty,” he frowned; then blurted, “The Fed is the biggest source of uncertainty!”
The stock markets didn’t react at all at first. Later, they closed mixed.
The next day, mortgage interest rates crept downward.
What seemed to be an excitement bust for the media was good news for many of the viewers. When the Fed funds rate continually hovers close to zero, there’s ample reason to suspect that Lewes mortgage interest rates might stay put for a while. TheStreet website later reported that they expected rates to rise a bit before year’s end. Given the recent record of expert predictions, it might be safer to stand behind one with a better chance of success: the next Fed announcement, I predict, will be the most anticipated announcement in years.
Meantime, if you have been mulling over whether to take advantage of the current balmy mortgage interest environment, I hope you’ll give me a Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
Along with all of last week’s New Year’s Day festivities came what you could call the New Year’s Frame of Mind: the familiar, this-time-of-year special consciousness of the passage of time. For most Lewes residents, all the other seasons come and go with everyone too busy tending to everyday affairs to pay much attention to the big picture: the progress (or lack of it) toward the major goals most everybody hopes to achieve.
It’s that New Year’s Frame of Mind that’s behind the impulse to make New Year’s resolutions. After all, there’s no such thing as ‘Fourth of July resolutions,’ or ‘Labor Day resolutions,’ even though a quick check of the calendar confirms they come once every year, too. Nope; it is the moment when the crystal globe slides down to the Times Square throng and old Father Time greets Baby 2016 that’s most likely to trigger thoughts of how preposterous it is that another whole yearhas gone by.
Whether or not that feels terrific is partly due to how well we’ve advanced in our individual Grand Scheme of Things…be it a self-improvement incentive (that’s why they run all those ‘learn a foreign language’ commercials in December) or long-term career growth.
For most Lewes residents, progress toward financial security is one of the larger issues that the New Year’s Frame of Mind can trigger. Right on cue, many of last week’s end-of-year broadcasts included a sobering study about the average American’s savings picture…actually, ‘sobering’ is too mild a word. As one credit guru put it, the statistics were ‘dizzying.’
The survey was credited to an outfit called GOBankingRates. They had released it months ago, but it drew considerably more attention as the calendar neared January 1 (getting the New Year’s Frame of Mind treatment). Their pronouncement wasn’t so much ‘dizzying’ as it was frightening: the lead finding was that 62% of Americans have less than $1,000 in savings!
Reassuring information was readily available, though, for anyone who did more than a quick scan of the survey. It turns out that they had asked about savings accounts only—so the headline-grabbing number left out retirement accounts and the like. As it relates to Lewes real estate investors (if you own a Lewes home, you are certainly an Lewes real estate investor), they also hadn’t included real estate equity in the ‘savings’ total. That certainly makes their scare headline less than dizzying. As the first commenter on their own website noted, ‘why keep money in a 1% savings account?’
But GOBankingRates wasn’t exclusively a source for misleadingly bad news. As compensation, they also supplied surveys of the 10 Best Tax Havens in the World (Luxembourg is #1) and 2016’s Top Resolution (it is “enjoying life to the fullest”).
Here’s hoping that our town’s 2016 proves to be a remarkably healthy, happy, and prosperous one for you and your family. And if ‘enjoying life to the fullest’ this year involves buying or selling a Lewes home, I hope you’ll give me a call! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.