Federal Reserve raised interest rates this weeks Tuesday. This time Committee gave rather soothing outlook for the future and it seems like we are not going to see further rate hikes any time soon. While rate increases are tough for people who have mortgage, this latest rate hike cleared some dark clouds over the housing sector.
I hope Europe is not going to start battling inflation tendencies that we have in few big countries. If Western interest rates will stabilize there is a good chance that we will not have housing sector led recession. It does terrify me to think about the effects that interest rate parity with U.S. would have in Europe.
So you once again wonder what does this have to do with log homes? Well, unless you are building a primitive log cabin, the chances are that you are resorting to a log cabin kit, which is very expensive. On top of that log frame comes work that puts up the roof and interiors. Log homes are not cheap. However, they are not as expensive to build as stone houses, because there is less expensive working hours needed. Timber frame building however beats log home building in terms of costs. So watch out those monthly payments.