Over the past couple of years, the United States has been coming out of the dismal recession that bogged the country down for so long. The value of the dollar is again on the rise, and other areas of the economy are showing some great improvements as well. The U.S. dollar actually rose to the highest point in five years recently, and that’s good news for investors in a host of different areas, including real estate. With the value of the dollar higher, it could mean that it’s possible to buy quality real estate, which also has the potential to keep rising in value.
Will the Trend Continue?
Most of the experts feel that the trend of the rising dollar will continue through most of 2015, even though there could be some slight rises and falls along the way. One of the reasons they believe this is that the economy outside of the United States is actually doing poorly. It will cost countries that buy exports from the United States more money to buy the goods they need, and this will help to improve the country’s economy further. Some worry that the strength of the dollar could actually cause more financial problems around the world. They fear that some banks in other countries could actually go into default because of this.
The United States has struggled in recent years to improve the economy at all levels, but things do seem to be going much better for the nation right now. In November alone, another 321,000 people became employed – and this was outside of the agricultural sector. This is the biggest jump in employment since 2012, which is another good sign that things are heading in the right direction. The expected number of jobs was only 230,000. The addition of nearly 100,000 extra was something of a surprise. Right now the unemployment rate is at 5.8%. While it could stand to go lower, this is the lowest it has been in eight years.
Other countries around the world are simply not growing at the same rate as the U.S., and that’s causing those nations, many of which are rivals, to start to fall behind. Europe, India, and China are all starting to fall behind.
The Interest Rates May Rise in the Coming Year
Experts also feel that the Federal Reserve might raise interest rates in 2015, as this will help to reduce the risk of inflation. However, it was lowered despite all the predictions and looks like it is not going anywhere any time soon. There has not been an interest hike since 2008, when the country was in the grip of a recession. Therefore, this is probably the best time to make large purchases, such as with real estate.