5 of the pending sales last week were listed under $225,000, a price range that does remain active. brokers if they were seeing what we are seeing: a lot more buying activity in the market.Get windows washed by a Professional window washing company so they are not streaked and sellers stay safe.In a buyer’s mind, the home’s exterior reflects the condition of the interior.This caused a round of panic home inspection reports selling over the next 2 weeks which has left the DJIA around 8,000.The Fed announced a surprise ½% rate cut on February 8th to try and settle the markets and to help the banking crisis by making it cheaper for banks to borrow money.
The bad news – over the course of that same week mortgage rates actually went up ½% and were approaching 7%!Industrial Production fell a whopping 2.8% and Consumer Confidence was down. My advice if you are buying a home, refinancing or working with clients who are doing either, is to work with an expert who can guide you and advise you as to when and why you should lock a rate.With over 17 years of experience and a track record of truthful and honest service, I am that guy!
Of course, we’ve all heard about the $700 billion program, passed by Congress last week, to “bail out” US banks.Due to higher than normal foreclosure rates in portfolios investors have been unwilling to new and existing MBS.These write-downs have created huge paper losses and that combined with banks inability to sell mortgage assets has created a contraction in lending and a liquidity problem at banks – they simply don’t have enough cash to make loans and meet capital requirements.
This fed rate reduction combined with the government bailout plan and other recent moves are all reaching towards the same goal – to increase liquidity in banks and foster an environment in which banks can and will make more loans available to consumers and businesses and thus stabilize the financial systems and the overall economy