Stage set for rising interest rates

October 14, 2010

Dr. Ted Jones, Chief Economist for Stewart, says:

“We now have set the stage for rising interest rates, rising oil prices, and therefore rising gasoline prices.  Throw in some economic recovery in the next 18 to 30 months (increasing the demand and price for oil) and you have my forecast: Gasoline will cost $5 per gallon sometime in the next 36 to 48 months-and that will hurt the economy. ” 

“At the same time, however, from a real estate perspective, properties closer to where people work and shop will become more valuable as transportation costs escalate (and for those cities with mass transit in place, properties near mass-transit access will also become even more valuable).  If I am correct on all of this (and there are a lot of items being juggled in the air in this analysis), location of property becomes even yet key in the near future.”