So the Fed announced that they are thinkin' about maybe lowerin' their rate at the end of the month. That's nice.
Here's My Concern With It... They are lowering rates because the housing market is still tanking in many areas of the country (not mine thank goodness!) and that means fewer taxes collected... it's a BIG DEAL, don't get me wrong.
But just because the Fed lowers by .75%... Do not get sucked into believing that mortgage interest rates will go below 5.5%! How soon we forget! FANNIE AND FREDDIE are starting to add their "special fees" to borrowers with less than 680 credit score! Once priced into the loan - rates for the MAJORITY OF BORROWERS will be 1% of interest OR MORE higher than the going rate!
ADD TO THAT the fact that FICO is changing it's model! My personal opinion is that the scores are not going to go HIGHER with the new system...
So effectively we NEED more than the little "sprinkle" the FED is likely to give us for rates to REALLY go much lower!!! We will REALLY need Fed Funds rates at 2 o 2.5% in order to TRULY help the economy!
I don't know I think the biggest thing we need right now is for the news media to quit yelling "THE SKY IS FALLING.....THE SKY IS FALLING....." The media is keeping a lot of the public out of the market and if they would just lay off or start reporting some of the good news then maybe just maybe the market will make a faster turn.
Here is Seattle we are really starting to see things pick up but then our market is different than most right now....
Good luck to you all and I wish you health and wealth
Todd Hueffed
Todd: I agree! We need the GOOD NEWS and I guess if the press keeps saying that rates are going DOWN that could be good??
Mary: I liked that picture too! It's how we feel - RIGHT??? A couple of basis points "ainta' gonna do it!"
Francis! My friend - as always - you are DEAD ON! I just figured out that I'm probably "too hip for the room" among most of the agents I work with - so I'm EMAILING THEM links to some of the POSITIVE things I've found on AR! I'm tryin' to spread the word! The people here need to embrace blogging, VIDEO - lots of GREAT tools that will help us all sell the area!
I agree with your assessment. When the priceof money goes down, so does the dollar. Gas, and oil, and commodities move in hte opposite direction. That translates into $3.50 a gallon of gas and higher prices on transportation, food, produce...that is inflationary. Prices are moving down, adn eventually mortgage money will be up to combat inflation. So cheaper home price translates into higher cost to borrow.
PS It isn't negative press, its facts we are dealing with, and they are far worse than a press that does not understand the scenarios.