The most recent data coming in from Redfin, a retail home selling site, shows that the Real Estate Market has already turned from a sellers market to the favor of buyers. It only took 3.5 months for this to occur.
The Federal Reserve Bank began increasing the rates they charge banks a total of 1.5% on March 15th through the middle of last month. Last week, the 30 year fixed rate on conventional lending was around 5.7%, an increase of over 2.5 percentage points since the beginning of the year.
The Fed’s job is to cool the economy and slow inflation. Their actions have done exactly that in the real estate markets.
In the four weeks prior to June 19th of this year, 6.1% of home sellers reduced their asking prices. The last time this happened was back in 2015.
This is great news if you don’t happen to be a home seller because it means that the actions of the Fed are working. In the last three years, home sellers could charge almost any price. That trend has now reversed.
The Fed is expected to continue raising its benchmark interest rate. Opinions vary, but many economists expect them to increase their rate by another 1.75% before the end of the year.
Hopefully, this will cool down the rest of the economy and put the brakes on inflation. Again, so far, this is good economic news for a change.
Let me leave you with this.
We had a primary election in Illinois last week, and the results were interesting, Once analyzed, it seems that everyone was only voting against something.
Establishment politicians are expecting a difficult November. Why? Because voters seemed to be fueled by an anti-establishment feeling which decided most of their votes.
Primary issues ranged from abortion rights and Trumpism to the economy and safer streets. Whatever your issue happened to be, our electorate was singularly divided and primarily voting against an issue rather than for a particular candidate.
Please take a moment and think about how sad that truly is. When’s the last time you actually voted for someone rather than against something?
Frankly, I can’t remember, but let’s leave me out of this. Whatever your motivation happens to be, please go to the polls and vote.
I was taught by the guys who fought The Big One and Viet Nam. We had a very basic rule in my home.
If you don’t go and vote then you don’t have the right to complain about the outcome.
The next few months are going to be interesting. A couple of months from now, you won’t be able to turn on anything from a TV to a computer without seeing a political ad. They’ve even begun spamming text messages to my cell.
You can argue that your vote doesn’t count, and it’s a decent argument, but please make your voice heard. Whether you’re far right, far-left, in the middle, or somewhere else, exercise your most basic right as a citizen of this great Land of Liberty.
Millions of our forefathers died for this right. Doing anything less would be to dishonor their sacrifice.
Whatever your choices happen to be, go to the polls and vote.
We’re all going to get through this. Let’s get through it together.
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