St George Utah Real Estate Interest Rates
Interest Rates Being Influenced by Several Factors
Several factors are weighing in on how interest rates continue to be influenced for the St George Utah Real Estate market, most of them being global economic factors.
Economic Factors Abroad
The same bale-out that was being done locally where the local government borrowed money and bought several bond backed securities, to help influence the markets stability, which kept interest rates down, the same thing that was done here, is now being done on the global scale to bale-out several countries in Europe, the European Central Bank along with the International Monetary Fund unveiled a $955 Billion loan package. One impact is a weakening confidence in the Euro.
On another note, inflation is growing in China, a big player for our goods.
Local U.S. Economy Factors
One result of the U.S. weakening dollar was that while imports became much more expensive, exports looked more attractive to foreign purchasers and this helped many local muti-national U.S. corporations. With the Euro weakening, this situation is now reversing and less confidence is going to stocks again, which could help bond and home loan rates. However, other factors, to include the arch enemy to home loan rates, inflation, looms ready a viable candidate on the horizon. The affect of China's inflation to watch will be that it will cost more for their imports, causing inflation to spill over into our country as well. This entire scene of complex factors continues to keep bond and home loan rates in volatility. However, they appear to be staying down for now and as such it is making for this still being a good time to buy real estate in St George Utah.