There is more and more talk nationally about inflation and the need for lending restrictions to "loosen". How does this affect Real Estate? Real Estate is not considered in the major factors of inflation; but, Real Estate is considered as an asset and nationally there has been no price increases of Real Estate. However, as far as the Real Estate category, rents are included in inflation calculators and they are predicted to rise.
If I had to predict, I would say that we are going to see an increase in interest rates here soon (inflation) along with "loosening" the lending restrictions to balance each other out. I think the historical low rates are about tapped out because there are fewer and fewer of those who have stellar credit to acquire the mortgages that are available right now. In order to generate business, banks will feel pressure to loosen their purse strings and the interest rate will reflect this allowance by increasing.
Mind you that there is the big behemoth of the Dodd-Frank Wall Street Reform and Consumer Protection Act being implemented to protect consumers and to protect the stability of the Real Estate Market. It is going to happen sometime. You know they are going to find a way to prime the pump and get the water flowing again.