It has been my pleasure to write articles regarding misunderstood values versus price against interest and payment.

Although price is the focal point of a good to great purchase, payment is the comfort level and other material aspect of the transaction impact value from different perspectives.

Therefore, another way to understand real estate purchasing and effects on cash or equity is the 10-year bond, which is in some part directly responsible for mortgage rates. Although the difference in rates today versus rates prior to 2007 has been vast, there are some factors that require an education.

Since Nov. 15, 10-year bond rates have gone up almost 70 basis points. The rate fluctuates on any given day, but can forecast the future — if watched correctly.

Rising bond yields can be attributed to the resurgence of inflation. What does that mean? Investors could convert to bond purchasing for higher yields and most probably move dollars from stocks to capture this income opportunity.

When this transition begins, there is high possibility of inflation lurking, therefore placing pressure on banks and the Federal Reserve to raise interest rates to offset or control the amount of inflation that could occur. Obviously, interest rates are not the only reason for economic changes, but they control the cost of funds and consumers’ ability to leverage. It is like a faucet that regulates the flow of water. It could slow housing, or at minimum, slow sales until consumers get accustomed to the new rates and stability of the market.

With the probable expectation of inflation occurring in 2011, there is a direct

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