Interest rates expected to increase in 2010

What is the worst thing that you can do to hurt yourself in real estate dealings?  The answer is procrastinate.  I have heard the story over and over again.  People find a property that is what they want, they research it, compare it to other properties, call an agent, view it, and then....wait.  Wait for what?  The seller to get desperate, everything to feel right, the moon to shift phases, whatever.

It happens to sellers, too.  They are ready to sell.  They have done their due diligence, and even contacted an agent.  Then....they stop.  They wait.

The result?  Many times buyers lose the property.  It sells or goes off the market.  For sellers, their neighbors sell and move away while our potential sellers stay behind wringing their hands on what they should do.  Something else that can put on some pressure for both?  Interest rates increase.

That is a really likely scenario to become reality in 2010.  Don't take my word for it.  How about a quote from one of Freddie Mac's economists:

"The Federal Reserve's scheduled phase-down of it's multi-billion dollar purchases of mortgage backed securities, plus expected moderate growth in the economy, will force rates at least a percentage point higher."
-Amy Crews Cutts, Deputy Chief Economist with Freddie Mac

We have become accustomed to four percent interest rates:  4.5%, 4.75%, 4.875%.  This will not last forever, folks.  The interest rate is tied to the economy.  The economy is improving (no matter what your friends tell you).  This is a good thing.  We want a strong economy.  However, the incentive to hold interest rates down is slipping away.  They are beginning to edge up right now.

If you are ready to buy, do it.  If you are ready to sell, do it.  If you aren't ready for either, then don't do either.  But, please don't allow procrastination and worry to stop you from making a good decision.