Dollar still falling

The US Dollar's fall in value signals more buying power for UK and EU Property Investors.

As the US Dollar continues to fall in value against the Euro and other foreign currencies, many investors see this as prime time for investing. The weakening dollar is just one of many opportunities that investors have to buy into the US real estate market.

This week, the dollar hit the lowest point against the euro. It broke the barrier of $1.50 for the first time. Most economists do not feel that it has hit bottom yet, but that the dollar will likely start picking up speed by the middle of the year, when the US Federal Reserve is likely to stop cutting interest rates and the US economy begins picking up. However, it still offers excellent opportunities for investors at the moment.

Those opportunities come in the way of other benefits as well. Mortgage rates in the US are at the lowest point they have been at in some time. Additionally housing prices in key areas, including key tourism driven areas such as Florida (a long time UK investor favourite) and California, have fallen drastically, making it even easier to purchase in these areas.

Economists and forex strategists are not in agreement on just how far the US dollar will fall, many of them believe that as soon as the Fed stops cutting rates it will pick up again. That upward movement is likely to be driven by various factors including the number of investors that are drawn back into the US because of the weakened dollar.

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