A report just came out and said that home prices ROSE 8.3% in all but four states. That's the largest gain since 2006.
THAT is why interest rates will start to creep up --- IF --- IF --- that continues. Money is a market. More demand to borrow - causes the rates to go up. Money is no different than anything else -- if there is demand then things go UP.
So back to the house/interest rate question. Those that haven't already jumped in with both feet are already seeing that once in a lifetime opportunity (Low house prices - lower interest rates) slip away.
The FED is still artificially holding rates down. Once they see the employment picture brighten and the housing sales start jumping up... they'll ease off the brake and let the rates rise.
FOR INVESTING 102
One of the oldest sayings is ---- "when interest rates fly - stocks will die"
We have a long way to go for the interest rate (treasuries and CD's and Money Market funds) to start to be attractive enough to pull money out of stocks and into interest bearing investments. But for 102 -- you need to learn to be aware of these interactions and trends.
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