Can you trust your Realtor? New NAR ad reviewed.
By FRANK LL0SA Esq.- Northern Virginia Broker .:. FranklyRealty.com
(Northern Virginia Homes - FRANKLY REAL ESTATE Inc)
Recently NAR (National Association of Realtors) came out with this ad:Click for PDF of ad and read: NAR's site supporting the adThe ad talks about the benefits of buying today, yet it says "or sell"!Here are the benefit of "buying or selling" as explained in the ad:1) INTEREST RATES NEAR RECORD LOWSFrankly comment: While rates are low compared to the last 40 years, rates are higher than just a year or two ago. As a percentage as much as 50% higher with ARMs! So the buying power for a $600k house is now about $400k for a buyer using a 5 year ARM (note that the 5 year ARM is about the same price as a 30 year fix, so far fewer people are buying ARMs). On the flip side, will rates go up more? If they go from 6 to 7%, it isn't a 1% increase, it is a 16% DECREASE in buying power. So this poin...