Here’s an editorial from The New York Times on how risky mortgages — such as adjustable-rate mortgages and interest-only loans — are influencing the housing boom across the nation. According to this editorial, “The rates on half of all adjustable-rate mortgages reset [i.e., go up] within three years of being issued!” If you’re like many first-time buyers today who are barely able to afford buying a home now with such low interest rates, will you be able to afford your house payments if the interest rate on your mortgage goes up?
First-time buyers especially should take the opportunity to read what the Times has to say. Make sure to thoroughly explore all your borrowing opportunities with your mortgage broker or loan officer, ideally before you begin house hunting.
You know the old saying, “As the local economy goes, so goes the real estate market?” Well, okay. I just made it up. But with talk of a real estate bubble gaining traction, there’s at least some indication that the Seattle economy might just be producing the wealth to support higher home prices.
The Puget Sound Business Journal reported last Monday that restaurant openings are on the rise in Seattle. Several new restaurants have opened downtown in recent months, but outlying areas are seeing the most growth in eateries.
Restaurant boom: Sites multiply on Seattle outskirts - 2005-06-06:
Restaurant consultants say many more openings are planned, a reflection of the widening perception that an industry badly shaken by the dot-com fallout may finally be recovering.
“No question about it — ‘05 is going to be a good year for restaurant openings, and ‘06 will probably be even better,” said Arnold Shain, president of consulting firm The Restaurant Group in Seattle. “Consumer confidence returned last year, and now we’re seeing that come to fruition.”
