In a “History of Caldwell Real Estate,” the End of an Era?

Thinking about Eras in the History of Caldwell Real Estate

Will Historians See the End of One Caldwell Real Estate Era?

 

In the unlikely event that a comprehensive “History of Caldwell Real Estate” ever became a best-seller, surely an entire chapter would have to be dedicated to the current episode Caldwell home buyers and sellers have been living through. As in the era of 1975-76 (that chapter’s title would be something jaw-dropping, like “The Time of 26% Mortgage Rates“), this latest epoch might have an eye-catching name like “The Time of COVID-19—and Practically Free Money.

Admittedly, true academic historians are more restrained in their chapter titles, but to be a best-seller, this “History of Caldwell Real Estate” would have to be aimed at the wider reading public, who gravitate toward drama. And this has been a sustained period of historically low mortgage interest rates. Okay—not really “free” money—but when buyers are able to lock in monthly mortgage rates that begin with a “3” (or even a “2”!), rates are leaning in that direction.

The reason why we might fantasize about how our current Caldwell real estate environment will be looked back upon by future generations is that right now, it seems to be drawing to a close. The pandemic numbers are still high, but as for the part about “practically free money” (AKA, “low interest rates”) last week, the writing was clearly on the wall. The news came from the Federal Reserve.

Jerome Powell, having just accepted a second four-year term as Fed Chairman, made statements that signaled a likely turnaround in the low interest rate environment he (and his Board) had previously fostered. The sequence of likely events is complex, but if the Fed accelerates its plan to reduce bond purchases, among other effects, it will clear the way for boosting the Fed Funds rate. Almost certainly, that will hike the interest rates Caldwell home buyers will see from mortgage companies.

How likely would such a move be—and how soon? For home buyers and sellers living in this era, those remain open questions. That’s the advantage the future author of any comprehensive “History” enjoys. But for right now, we are still in an era of historically low interest rates, albeit probably at the tail-end of it. For today’s home buyers and sellers who are creating their own individual Caldwell real estate histories, if ever there were a time to take advantage of an opportunity, this certainly looks like one! Why not give me a call?