There are concerns that the “Perfect Storm” is brewing in the U.S. Economy. The “Perfect Storm” referring to stagflation; this rare phenomenon occurs when we see a stagnant or declining economy, yet prices continue to rise at accelerated rates. When these two factors come together it can have crippling effects on consumers pocket books.
Fed Chairman Bernanke indicated that the Fed is prepared to cut interest rates again to head off a recession. Unfortunately, lower interest rates which provide fuel for the economy also have a tendency to create upward pressure on prices. Bernanke clearly understands the need to create money supply to help a slumping economy, but also the need to not over extend credit which can further complicate an already difficult situation.
The continued decline in interest rates create a great opportunity for home-buyers and sellers in our market. Home prices have remained virtually unaffected in our area and lower interest rates will increase buying power and more house for the money!
The current rates as of February 29, 2008:
30 Yr Fixed 5.875%
15 Yr Fixed 5.25%
3 Yr ARM 4.5%
Thank you for taking the time to read our blog; comments are always appreciated. You can also visit our website, www.TeamTappe.com for updated homes available.
-Sean Osborn- President Team Tappe
Team Tappe Talk 
