After 6 long years of extraordinarily low interest rates, the outlook for 2015 is that the Federal Reserve will finally start to allow rates to rise.  We see that at the 2 day Fed meeting this week that the Fed is ending its program of buying bonds and leaving the market to its own natural forces.  That is the 1st step prior to a progression to let rates rise.  Afterall the rate of 0% – 1/4% fed funds rate is historically low and has been that way for many years now.  Be ready real estate owners, when rates rise, it will put the brakes on the red-hot real estate market we have going on.  Of course rates need to rise to normalize the economy, the low rate environment is bad for retired persons on a fixed income who rely on investing their money safely for a supplement to their retirement pension or Social Security check.  We watch the markets as all in the mortgage business do and take the signals from the Fed and plan our futures for the coming year accordingly.  If you were thinking about selling your Note, sooner than later would net you more money because when rates rise, your note will have to take a greater discount to make up for the higher yield requirement.  If you would like to know how much your note is worth, please call or click to get a no obligation quote.

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