Interest Rates and Loan Availability

In the past week I have had two posts about the recent Federal Reserve lowering key interest rates and have indicated this was good news for our struggling Sacramento real estate market. I received a comment on one of these posts asking why I was cheerleading low interest rates when it was cheap money that got us to this point.

That reader’s comment made me ask if it was low rates that drove prices up to a point where very few could afford to buy. Although I am not an economist and may not fully understand the relationship between rates and fund availability I think, think we need more than low rates to spur any long lasting recovery. Check out my column over at Rocklin and Roseville Today, “Sacramento area sellers need more than low interest rates” or at jalone.com on my news page.

BTW, thank you Brad, Will, Traci, Jim and others who have seen the article about me in Broker Agent magazine and took the time to call or email me. Being the broker agent of the month for the Sacramento region is a wonderful honor and I am very appreciative to those who nominated me.