Interest rates down to ALL TIME RECORD LOWS…..

Remember when Fed chief Janet Yellen warned back in January that more interest rate increases were headed our way. You know, back when the average overnight rate on a 30 year fixed mortgage sat at 3.9%. Well, so much for those inevitable rate hikes as this morning interest rates on that same 30 year fixed mortgage touched all time record lows. The cheapest money ever for borrowers. Like in history.

Interest Rates with Logo

Sure, this is great news for those borrowing money but it isn’t great news for inflation, those living on fixed income and a whole host of other reasons. But the Fed has it’s back against the wall so they talk nonsense. Paradise Sharks has told you for years that rates cannot go up significantly and the reason is our national debt, which this morning is closing in on $19.5 trillion dollars. We have to pay interest on that debt and if interest rates go up if tightens the financial noose around the neck of the United States of America. Each 1% move means another $195 billion in interest on our debt. Every year. Add that to a budget (imagine we actually had one) that hasn’t been balanced since Dwight D. Eisenhower was in office. For those that don’t remember Dwight he left office over 55 years ago.

I sit back and watch the banter of the current Presidential election and shake my head. Both the Republican and Democratic parties have done their part to ruin the financial stability of America. I chuckle when I read Republicans pound their chest and say we need to get Obama out of office as he has almost doubled the national debt during his time in office. Yes, you know the Republican party that champions Ronald Reagan who nearly tripled the national debt while he was in office.

I have proudly voted for the Libertarian party each election since before the turn of the century as they are the only party whose platform is to cut the size of government and balance the budget. Back when I made that decision our national debt was under $5 trillion but the hand writing was easily seen on the wall and I didn’t like it. I like it even less as we approach $20 trillion and the thought of our next President doubling it. Again. It’s mind boggling. And damn scary.

So, for now get out there and borrow money because money is at historically cheap levels. Just keep in mind that the real cost of low interest rates are not good for our future. Or our children’s. Or theirs……

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Tom Priester

After spending years among the top individual performers at one of Palm Beach County’s largest and most successful real estate brokerages, Tom Priester knew there was another way to do real estate. A better way. Real estate services focused on the customer. Like the old days when the customer truly was #1. He tired of listening to why he should be going out to have his customers sign one sided buyers’ brokerage agreements. He tired of hearing how he should be selling customers why paying higher commissions, like 7% and 8%, was to their benefit. He tired of hearing how he should sell his clients on why they should be paying hundreds of dollars in additional “transaction fees”. The business had slid way too far from being focused on the customer. His customer. So he decided the time was right to be different…..by design. To start his own unique boutique real estate firm truly focused on his customers. They will now have access to a process focused on them. Only the best marketing techniques to sell their homes. No cutting corners. Commission structures based on his clients needs not his. Paradise Sharks was born out of Tom’s passion to return this business to the customer. Where it belongs. If you want a real estate experience that benefits you, just give Tom a call at 561 308-0175 or send him an e-mail at tom@paradisesharks.com. You can always pay more and receive less but that just would not make any sense. Would it?

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