How do the changing interest rates affect real estate transactions?
The interest rates are kind of volatile right now. People see that the prime rate is dropping pretty dramatically so a lot of them are calling with questions about their current interest rate. And I think a lot of people are looking to buy now because of the interest rate. As an example, I have several clients with floating and adjustable rate notes. Though they are pleased that rates are going down, some of them are looking for ways to fix the rate now because it can eliminate the potential interest rate risk in the future and secure a fairly low rate. Do the Federal Reserve’s actions affect the real estate market very much? I know after the 75 basis point drop recently following the emergency session, we received a lot of phone calls from clients that wanted to look at the interest rates on their deals that are financed for the long term. The clients see that the prime rate has dropped 75 basis points, and they think that their rates should drop, as well, and that does-n’t necessaril
