You cannot have your cake and eat it too! For those that are looking to buy a home or real estate, now is the time. This is the bottom. You have cheap money, and cheaper homes, and that translates into an unbeatable value. If rates rise higher, it will cost you more to carry less home. You need ot consider a purchase before yuo realize what opportunities you had! There is an old axiom in real estate that seems to have been all but forgotten, and many would like to sweep under a rug. The truth of the matter is that axioms tend to demonstrate their worth. In the boom times from where we have just emerged, low rates meant exorbitant appreciation. We have still leveled of with very good mortgage rates that are in the low 6% range, and historically considered very cheap. One problem that arises with lower interest rates is that they fuel inflation. The only way inflation is curbed it to raise interest rates. The slight bump we have seen in the 30-year fixed mortgages isn't bad at all, and I hope it dies not rise further. But as the effects of the increased energy costs permeate the economy as they did in the late 70's, the Federal Reserve will have to curb the demand for easy money. There is only one way to fix runaway inflation, and that is to tighten credit, by raising rates.
The most important angle of inflation is that money will be even harder to get, and here is the reasoning. Banks do not want to lend out money at 6% for a 30 year fixed rate mortgage if the inflation rate is over 6%, or high enough to erode any profit. The math does not work! Banks should not be in the business to lend money at a loss, they are leaning this lesson rather quickly now, and trying to be much more prudent. Lets all hope that the softening economy does the work for us rather than the Federal Government coming in and pushing the rates higher, that will not be good for anyone in real estate either making living, buying or selling a home. The buyer will pay more mortgage, and qualify for less, the seller will have to get used to less money for borrowers, and deal with a lower price scenario, and for us in an already troubled business it would be better to be on sabbatical.
RE/MAX Paramount Properties 678-595-5283 Direct
Or 888-940-0074 Toll Free Office
Atlanta Real Estate Agents, Alpharetta GA Homes for Sale, Dunwoody GA Homes for Sale, Atlanta Real Estate & Atlanta Homes for Sale 
Gwinnett Homes for Sale
Atlanta Real Estate Blog, Cumming GA Homes 
Watch out below Jim with rising rates and prices already dropping.
John Walters (Specialized Real Estate) So far what I've seen here in Atlanta isnot bad compared to other areas, but the trend has started here, and been acknowledge in our mort recent sales stats.
Let face it we are sending over 500 billion a year for oil imports. This is lowering our dollar. This is a visious spiral and is depleting our currency reserves. Banks don't have the funds to lend. So they demand more for the funds they have. This is the risk spread expansion from treasures to all other debt. Inflation is a later by-product of raising commodity prices. Oil, copper, steel ect. and also food due too the production and speculation of corn for ethenol. These are the overwhelming problems we now face in our industry. I don't want to go into in this comment the political problems presented here along with our kids and men, and women being at war mainly for you guest it, "Oil".
Our habit of oil has caused great problems upon our nation and planet.
Solve it and rate go down 200 basis points.
Richard Stabile (REMAX real estate associates) I'd start by getting new politicians in both parties, that will be leaders. That is why we are in hte mess we are in. No vision, business as usual! When I was in college the told us about oil and limited reserves..this was a long time ago. Now everyone wants to drill? The democrats have prevented offshore drilling, no drilling in Alaska, and no nuclear! They want us to be slaves to political parties that are doing nothing for the people except divide us for the vote, and power! There are no doers in Washington, just users!
Jim- Another very well written post! And I agree that getting some new faces in Washington will be a good way to start mending our economy!
I would like to vote for new moms with young children. They work from the heart and their only agenda is for the future of our children. We need more diverse candidates. A more cross section of our citizens. Most people who are capable to run for office do not reflect our conscience.
Jen Olson (First Weber Group) Thanks! In the late 1800's there was a movement by the citizens in the country that crys was "Get the scoundrels out!" All new faces would send a message. Obviously we have not enacted term limits...we should. They are in there just to line their pockets. Who in their right mind woul spend 10 million dolars to get elected to a job that pays @ 150K/ year?
Richard Stabile (REMAX real estate associates) I agree. I also like military candidates that have moved into the private sector. They have shown a devotion to this great country, they are hard workers, they understand what freedoms and values are, and for the most part they are a political. We need to get the cronies, nepotism, and cliques out of Washington! They have screwed this up royally!
Jim- I agree with the term limits, and point well made about the exaggerated unbalance of money spent vs money earned.
Jen Olson (First Weber Group Realtors) To me this is a great time to buy. This is a bottom if a buyer is looking at value, and monthly payments. Mortgage rates / payments IMHO are on the rise.