Everything i have been reading is now suggesting the feds will actually drop rates when they meet at the end of july, with that said how is everyone feeling about this? What affect do you expect this to have? Is it time to dive in deeper while theses rates are so historically low?
I'm more concerned about jobs and that the areas where I invest continue to expand economically. Interest rates are a factor in that, but they're not the end all be all. I see market sentiment as a far more important factor.
As long as you can borrow below 6%, you should be trying to lock in as much debt as possible.
The fed lowering rates has more of an effect on short term vs long term rates. Also the market has already priced in an expected drop.
monetary heroin to try and keep the bubbles inflated
I suspect that this is to keep the market strong as people are fearing an imminent decline in the market. Keeping $ cheap will allow consumers to keep buying.
Evaluate your deals as the cash flow today and proceed. As agent we have the advantage of having a good grasp of the inventory and knowing more info on properties than the public so I would use that tool.
@Russell Brazil tempting but I don’t know. In my market values have come up a lot in the past 5-10 years and rents have increased only a bit.
Several of my properties made good rentals at the prices I purchased at, but would not make sense at current values.
It would kill my cash flow if I refied the max equity out.
Im not suggesting to refi. Keep buying
I’m hoping this eventually stokes up some higher inflation which is a nice positive for most RE investors!
I'm waiting until the impending drop, which should drop rates by a .25-.50. Currently in a VA loan and I'm refinancing to conventional so I can potentially rent this house out and have my VA loan in my pocket to get my next house.
Also, saving cash for a third house, which will be our first rental, purchased as a rental.
I'm bearish on the economy. Recommend ensuring you have enough reserves to weather a dip. I am not overextending myself.