Money Matters- Finally!

In our final round up of the year, I'm delighted to see the Fed increase rates a .25% after 2 years of speculation by all the experts at every Federal reserve meeting.

Frankly, I expected the Fed to delay once again as I was predicting the first quarter of 2016, but I'm very pleased they finally pushed the increase through. Now, all the speculation and anticipation is out of the way and we can focus on the markets as I don't believe we'll see another rate increase until Q4 of 2016 at the earliest. I had been saying for months that the longer the Fed waited, the more damage would be caused as it would be seen by the world as a sign that the US economy couldn't withstand a minimal increase of .25%.

Interestingly, the markets reaction with 10 Year Treasury yields has been somewhat muted because of the holidays and shortened trading sessions. Going forward, I expect there is a much better chance that yields on the 10 year Treasury will improve towards the 2% mark vs. moving higher.

With interest rates still at historic lows and strength in the banking sector in 2015, there will be a lot of fresh capital in 2016 to finance real estate of all types.

We want to wish you all a very happy, healthy and prosperous new year and to thank you for the support and confidence you placed in us in 2015 which marked one of our biggest years since our inception in 2001 for both residential and commercial loans.