Fed slows housing market plan; rates to stay low – Yahoo! News.

I think the number one question I am being asked lately is, What is going to happen to interest Rates? What will interest Rates do in 2010? Do you think they will go UP? Will they stay as low as they are right now?

These are all great questions, and I keep telling people I wish I had the magical crystal ball. I mean I can definitely see ghosts and all, but telling the future was a paranormal gift the almighty didn’t seem fit to bestow upon me..

However, he did give me an opinion. And I just happen to have one on the particular subject. For those of you interested read the above linked article about the Fed maintaining current course. This will give you an idea about the immediate future of interest rates. Now I always throw out the disclaimer that I am in the Real Estate industry and so therefore am a little biased on the subject of interest Rates. Why you ask? Well when they are low I obviously make more money, because I am selling more homes. However, I am a realist and a true capitalist. And therefore have a firm understanding in what hyper-inflation can do to an economy.

So what is my verdict finally? Interest Rates are going to have to go up sooner or later. We are borrowing way too much money, and we are seeing our own Govt. go in to massive amounts of debt to keep our machined of an economy going. I am grateful for the immediate results of the home buying going on in the market. However, what is going to happen long term?

People if you are not insane make note, interest rates will be going up. I strongly believe those of you wanting to take advantage of a low interest rate, and you realize that affordable housing can not go any lower in some areas, you better take advantage of it now for it will not last too much longer. Now if it doesn’t happen in 2010 I will eat my own words, and I will make sure to post an apology to all of those who think I am full of it..

Thoughts anyone, I always love a good opinion either way.

Spencer Janke