NOT WHAT THE REAL ESTATE DOCTOR ORDERED, HIGHER INTEREST RATES

As high oil prices are sending inflation into every aspect of our economy, interest rates tick up. The entry level buyer is driving the recovery efforts in our real estate market and higher rates take away their purchasing power. The reality is that until our market is fully recovered we are going to be dependent on lower rates to bring in first time home buyers and investors. Rates are then tied to inflation which is all about oil.
It is time for the US government to do something about oil prices. These high prices are driven by speculators with no place to make a profit today, so they buy oil. Let's hit on both the supply and demand side. Increase drilling, open markets, but drill smart and keep the environment in mind. Increase incentives for research to lower our dependence on oil. I would love to see a candidate for the President of the United States come out with a 10 year plan to cure our addiction!

Just my opinion,

Jeff Cameron

article on interest rates:
Mortgage Applications Plunge on Soaring Rates
By Reuters 18 Jun 2008 07:04 AM ET
Applications for U.S. home mortgages dropped for the fourth week in the last five as soaring rates on standard, fixed-rate mortgages choked off refinancing opportunities, an industry group said on Wednesday. CNBC.com
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity fell 8.7 percent to 508.4 in the week ended June 13.
The MBA's seasonally adjusted index of refinancing applications tumbled last week by 15 percent to 1,378.6 -- its lowest since July 2006.
The gauge of loan requests for home purchases declined 4.3 percent to 360.2.
Fixed 30-year mortgage rates averaged 6.57 percent in the week, up 33 basis points from the prior week and the highest since July 2007.http://www.cnbc.com/id/25237087