According to Freddie Mac, interest rates as of November 2006, are about one tenth of a percentage point lower than this same time last year. There is a lot of speculation as to why. Even the guru of economics, Mr. Greenspan, called it a conundrum last February after rates failed to rise (that is long term bonds failing to rise after the Feds have put pressure to raise the rates). The theory was that the long term rates should have been rising slowly over the last 12 months, but they haven't. One of the theories is that there is so much foreign investment in US treasury bonds. Less than 30 years ago, foreigners held only 12% of all treasury bonds. Now Asian countries alone hold over 52% of them. Whoa baby!!! Talk about a conundrum!
US Foreign Policy has not been real popular around the world the last 3 years. So why is Asia so zealous about our economy? That spawns another theory. It might be because of our confidence in our economy and in ourselves. Or maybe it is our ability to just move on. Consider the earth shattering affects of 9/11. Instead of dwelling on it, we have picked ourselves up out of the ashes and rubble and dusted ourselves off. We continue to mourn, we continue to remember, but we keep moving on. We believe in ourselves and we believe in mankind. Hey we're Americans! Our economy has been in unchartered waters since 9/11. Each and every month, we are making new history, creating new economic ideas and setting new economic trends. Other countries have taken notice.
Maybe it is my patriotic nature but I am a believer too. Sure there is a lot of negative press about the national housing market coming to a standstill and doom-sayers saying that the real estate market is dead. However we are still going to need housing, and we are still going to shop for the best location, the best price, and the best rates. We also have learned from our mistakes and more notably we want a good return on our investment dollars. So if you ask me, real estate investments, whether you are buying a home, land, or income producing property, is alive and well. Just ask our foreign neighbors. In Taos it certainly is!