June 18, 2008
The steady rise in bond yields over the past few weeks can be viewed as signs low interest rates may not stay low for long. While the credit and liquidity problems in the financial market may be contained, the spike in higher prices for oil, gas, energy and commodity are inflationary.
The increase in interest rates may be gradual, but this could contribute to market psychology for home buyers to adopt a more cautious stand and defer their buying decision. The projected real estate sales and listings statistics for the next few months are expected to result in properties taking a longer time to sell.