According to housing reports, home prices have declined 15.3% since last year in the 20 largest cities in our nation. Unfortunately, the key factors that caused prices to go down are still haunting us today.
As you know, one of these factors is that we are seeing a tremendous amount of unsold homes combined with new foreclosures coming onto the market every day. Also, in our area new home construction took a dive this June. Reports from the home builders association predict sales will not be better in the coming months.
Today we saw the Federal Open Market Committee’s decision to leave interest rates unchanged. Of course this was not a surprise. Actually, I think if we see a change in the future, we will see interest rates go higher rather than lower. Why would the Fed leave interest rates unchanged or even think of an increase? To Stop Inflation. I just don’t know if, as a nation, our economy is ready yet for any increases in interest rates.
What do you think?