[SKB]

I would benefit as savings and CD's would yield a higher interest rate.

I have no debt at all, I would love to see interest rates like they were back in the 80's.
I am sure that will not come true but a few more % points would make a huge difference to me.

Of course this would be SELFISH of me to entertain such ideas.

[rstate]

I'd agree that you wouldn't be affected as much as someone trying to obtain a mortgage, but I think everyone should still be worried. If rates increase a good amount (meaning bond rates increase), and you have any money in stocks, bonds or 401ks, there's a good chance the stock market will drop meaning that you can lose your cash for the home purchase or retirement money. In addition, businesses will have more interest rate expenses, so they might have to layoff people, reduce products or r&d to reduce expenses, and this can also impact you. So, in the big picture, I think it impacts everyone.

[kort677]

[quote=UKOK;863363][quote=kort677;862825]

Originally Posted by UKOK

Like I said, it was a house in Sarasota, not a house all over Florida.

like I said, it sounds like a great deal, go for it, let us know how it works out for you, may all your dreams come true

[macguy]

Originally Posted by Hondax

Rstate,

You can certainly say everything effecting money be it lending rate, savings rate, bond rate,...etc, will have it's effect. Can we at least agree that someone paying cash for real estate is not as worried about real estate interest rate?

In the respect that lower rates make it easier for the other buyers you will be competing with, lower rates would make you have to pay more for the same piece of property.

[kort677]

Originally Posted by macguy

lower rates would make you have to pay more for the same piece of property.

exactly, higher interest rates will eat into any cost saving you might see from housing prices going lower.
If you are planning on buying in the near future you might be able to lock a loan rate now.

[SKB]

Originally Posted by rstate

I'd agree that you wouldn't be affected as much as someone trying to obtain a mortgage, but I think everyone should still be worried. If rates increase a good amount (meaning bond rates increase), and you have any money in stocks, bonds or 401ks, there's a good chance the stock market will drop meaning that you can lose your cash for the home purchase or retirement money. In addition, businesses will have more interest rate expenses, so they might have to layoff people, reduce products or r&d to reduce expenses, and this can also impact you. So, in the big picture, I think it impacts everyone.

That is exactly why I have moved our capital into the G fund.
the Federal Retirement Thrift Investment Board (FRTIB) invests the G Fund exclusively in short-term non-marketable U.S. Treasury securities that are specially issued to TSP. G Fund earnings consist entirely of interest income on the securities. Interest on G Fund securities out paces inflation and 90-day T-bills. Payment of the account holder's principal and interest in the G Fund is guaranteed by the U.S. Government, thus there is no credit risk.

We will wait to see if the buyers are able to repair the technical damage done this past week as we continue to look for prudent entry points into which we can deploy some of our capital.

[tallrick]

If I had my way, interest rates would be 10-15%. People have to stop relying on debt and build some real wealth. With the terrible financial mess the US is in, those higher interest rates are in the future.

[rstate]

Originally Posted by tallrick

If I had my way, interest rates would be 10-15%. People have to stop relying on debt and build some real wealth. With the terrible financial mess the US is in, those higher interest rates are in the future.

Well, hopefully you won't get your way. There's not going to be that much "building of real wealth" when interest rates hit 15%.... but there definitely will be a lot of people looking for jobs.

[nychiefsfan]

Realtor says raising her commission pays off

DEAR BOB: As a Realtor, I want to thank you for your recent item about the drawbacks of cutting home sales commissions below the customary rate in the community. My specialty is listings. I find working with buyers is much less productive (although I make exceptions for good referrals). I've been selling homes for 14 years and will "negotiate" the sales commission on expensive homes to remain competitive. However, I tactfully tell my sellers if I reduce my commission to 4 percent or 5 percent, the buyer's agents will show my listings last only after showing the full-commission listings. Whether it's ethical or not, that's what happens. You might enjoy knowing about a recent full-commission, well-priced listing I had, which didn't get even one offer after 60 days on the market. It's a beautiful older home but on a very busy street. I suggested my seller raise the commission from 6 percent to 7 percent, with 4 percent to the buyer's agent. She agreed. I held a well-publicized MLS (multiple listing service) "broker's tour" with a deli lunch and got 125 local agents to re-tour the house. Within the week, the house sold for nearly the full asking price. Raising the sales commission can sell a house in a slowing market --Sharon R.

DEAR SHARON: Thank you for your insights based on longtime sales experience. Too many home sellers focus on the sales commission, thinking they are saving money if they cut the rate.

Inman Consumer News

[Obrero]

Originally Posted by SKB

That is exactly why I have moved our capital into the G fund.
the Federal Retirement Thrift Investment Board (FRTIB) invests the G Fund exclusively in short-term non-marketable U.S. Treasury securities that are specially issued to TSP. G Fund earnings consist entirely of interest income on the securities. Interest on G Fund securities out paces inflation and 90-day T-bills. Payment of the account holder's principal and interest in the G Fund is guaranteed by the U.S. Government, thus there is no credit risk.

Makes sense. You might also consider short term municipal rollovers for your non retirement savings. They reset every 7 days and are currently paying around 4%, but are triple tax free. Most banks sell them in lots of 25k, but they never advertise them.