Posted May 22, 2015 by Martin Armstrong
I live in the Intermountain West. Our local real estate market has been in the toilet for years. One local broker has noted that her office typically has two homes in sales process this time of year. This spring they have twenty-two homes in process — eleven times the recent average. I think FED rate hike chatter has convinced people to get off the fence and buy before rates take off. Do you think this has the potential to blow up the bond market?
In an earlier post, I mentioned how we sold my mother’s house in one week. Mortgage rates are currently low, and we are heading into the peak of this ECM. Historically, now is the time to sell if you need the cash or want to move to be closer to global warming. If you are a buyer, lock it in before you cannot. Do not borrow on any floating rate scheme. The mortgage market will dry up when the banks get in trouble once again. They bribed Congress to repeal the reforms, so we are back to full transactional banking. They will lose money once again in the debt markets.
The high end of the market is going crazy. This is largely due to CASH transactions; here we have money desperately trying to get out of banks, and the smart money is starting to worry about ECONOMIC TOTALITARIANISM by eliminating paper money to take whatever they want from your account, whenever they want. To survive, they are moving into art, antiquities, and real estate big time.
Tags: Abolishing Cash, Economic Totalitarianism, Mortgage Rates, Real Estate