Wednesday, January 28, 2009
They have been steadily buying mortgage backed securities (MBS) which has helped keep interest rates low. They intend to increase and expand their MBS purchases which will ensure that for the foreseeable future mortgage interest rates will not only stay low, but likely decline. Reats have creeped back up recently into the low 5% range but stand firm on our belief that before the end of February we will be in the mid to low 4% range on 30 year fixed mortgage loans.
The Feds also announced that they intend to keep the overnight lending rates between 0%-1/4%. In our opinion this is something that will continue for several years to come. This is great news for those with Equity lines of credit that are at prime (currently 3.3%-3.5%)! IF your lucky enough to have some money now is the time to take advantage of the low cost to borrower against it and use it make some money.
I have a family member with an equity line and have assisted him in using it for private lending (also known as hard money). He is in at 20% LTV loans on free and clear properties making 12.75% return on his money that is only costing him 3.3% to loan out :). More and more people are turnging to private investors as banks turn their back on everyone but Donal Trump and Opray Winfrey.
There are any number of ways one can take advantage of the current market. Stay positive, keep your eyes and ears open, and find a way to make this moment yours!
Monday, January 26, 2009
The poll results were 100% in agreement that it should be Infrastructure Spending.
The other options were Tax Rebates, Unemployment Compensation Increases, And Other.
These polls always suprise because you would think everyone would immediatly choose to recieve instant money through a tax rebate or lower taxes. The fact that people recognize that in order to recover we need to spend more on infrastructure tells us that we are living in one of the most politically aware times. People seem to know what is going on these days. That would explain why we have a historic presidency today. Had Mr. Obama run four or eight years ago he wouldn't have stood a chance.
Because the country is finally fed up they chose to get educated about the issues and make an informed decision!
Thank you to all who took time to participate in the polls. We were recently featured on a Fox 35 news piece that we utilized our poll information on. We will post a link to the video of the news piece when it becomes available. We appreciate your continued contributions to a more educated and empowered USA.
Monday, January 19, 2009
Our sources indicate that as part of the new stimulus package being kicked through Congress right now, they intend to reinstate down payment assistance for home buyers. They will be required to take a home buying class and pay $250 at closing. Sellers can contribute up to 6% and lender participation in this program will become MANDATORY.
That's right apprently someone finally grew a pair and decided that instead of passing meaningless new programs that no lenders participate in they will require it of them... FINALLY.
Word is that if a lender does not comply they will be reported to a federal agency that will investigate them.
News of this scale will surely make National headlines which is why we want to independently verify this informaiton before making an official announcement. Stay tuned as we hope to be able to get confirmation of this news as well as details of the program for you tomorrow!
Sunday, January 18, 2009
The results were as follows:
100% of respondents said good customer service was most important to them even above interest rates and payments.
This should be a wake up call for anyone in the mortgage industry. The days of taking applications and treating people like a number should be OVER. Mortgage companies MUST focus on the individual clients, their needs, their desires, their goals, and take on a more consultatative approach to how they manage their clients.
Now that the industry has shed all of the programs that were once available there is really nothing left for a mortgage company to offer other than local customer service. This should be the focus of all companies left in the game. Not that we have their attention but if we did we would be screaming it from the mountain tops... PROVIDE GOOD CUSTOMER SERVICE TO YOUR CLIENTS!
Sunday, January 11, 2009
The results of the poll were:
- Improved - 80%
- Worse - 20%
While our poll is far from scientific we think it is a good sign that people view this year as a potential turn around year for the economy. The media would like you to believe it will go on forever and ever, but like our readers... we remain optimistic!
Mortgage rates fell again through the end of last week. This will continue as we have said until we reach the low 4% range at which time the market will be ripe for a bottom and the turnaround can begin.
Thank you to everyone that participated in this weeks poll. We just wish we could get people to leave a comment with their info so we can start interviewing the respondents!
Wednesday, January 7, 2009
Tuesday, January 6, 2009
Fed minutes indicate that there was a worse than expected 4th quarter in 2008 and they lowered their expectations for 2009. How reassuring right? Part of the problem was that his excellency high exhaulted commander Paulson announced that he would not use the TARP funds to buy bad mortgage assets. We have gone over this many times in previous posts but those just joining us, the TARP funds SOLE purpose was to buy troubled mortgage assets and then Furer Paulson changed his mind after he got his hands on the dough.
Yes it was quite lovely. Anyway he decided to change his mind back again and wound up making their first purchase yesterday. This provided the POSITIVE market movements that should carry us to recover as was predicted when his excellency Paulson was on his knees begging for the cash initially.
Rates are holding steady for the time being but we are keeping our pulse on the markets because any day now rates are going to fall. They are going to continue to fall slowly until they get to the point where they should be now. Once there expect them to remain low for some time until we see recover end of this year.
If there are any fence sitters left in the game it's time to get ready. Market conditions are nearing their ultimate "bottom" and if you wait any longer you will likely miss the boat.
Sunday, January 4, 2009
Many pundits are predicting what 2009 is going to bring to the markets this year but we are withholding judgement until we have more time to analyze where we stand.
The holiday has wrought havoc with our ability to get to a television or computer. Family time is a rare commodity if you are lucky enough to remain in business in the housing market especially in Florida.
Mortgage business is still going strong and we are a looking forward to partnering with even more battle scarred realtors, builders, and other partners in the florida mortgage game.
We look forward to another year of sharing financial news, info, and commentary with the community. Our weekly polls will continue into the new year and we hope that we can begin to interview one person from each opinon which will give people the opportunity to market themselves a bit for free :)
Happy new your to everyone and may god bless you and your families.