INTEREST RATES AND WINTER TIPS

11.06.08

Long term interest rates went up last week to 6.25% or higher. Readers of this column may remember I was predicting that this would occur, although they have been fluctuating since those comments. It is clear to me that while low rates certainly help to stimulate an economy, and we all want that, the piper will have to be paid and it will most likely show up in sustained higher interest rates down the line. Some of you may remember the 70's when rates were in the 17+% range. I can tell you that the real estate market was still much better during that period, than it is now, with currently attractive rates. In my opinion, until rates exceed 7.5%, hopefully not for some time, as far as I am concerned, anything at/below 7.5% is very reasonable.

Some maintenance reminders: check your fireplace dampers to see that they are closed; be sure that your storm window panels are in place, whether fixed, or part of combination systems; drain any outside non-freeze proof faucets so they don’t freeze up, possibly resulting in broken piping; and, if not in residence, leave (all) your thermostats set at 50 degrees or higher to give an adequate protection level against interior freeze-ups should a power failure occur. I feel that you get at least 2 days of protection at a 50 degree setting, by which time power is usually restored.

Also for extended terms of vacancy, during the winter months turn off your well pump or your main water line valve (for municipal water hookups). If you don't know where to do this, ask your plumber. Well pump switches are either part of your electric panel, or possibly a separate switch near the pump; a town line water valve is usually right near the point where the line comes into the house at the foundation, or near the water meter. Doing this will avoid a big flood should you have a house freeze-up, which has happened to a number of homeowners over time. It takes only seconds of your time to do.

©2008 R. Leech features.