It's Friday October 2, 2009 and the bond market is driving down the yield on bonds.
Who does that help?
All of us!
Here's why.
Lower bond yields help lower mortgage rates.
$8000 first time homebuyer credit still available.
If a house sells, the owner can get on with whatever plan they had which drove them to list it for sale.
Inventory of pending deals should rise in October perhaps to a new record.
Shadow inventory will become real inventory
That government handout of $8000 ends November 30, 2009 and if you are negotiating on a home or about to negotiate on one, you have just enough time to close the deal in time to qualify for that $8000 credit. One unexpected consequence of this perfect storm is that it may create a multiple bid situation for a few weeks until near the end of October.
Choose your lender based on service right now! I've heard that one of the largest lenders is currently taking 90 days to close on a loan. That would put a buyer past the deadline for the $8000 credit.
None of the above items in and of itself is an overwhelming factor in helping the real estate market, however, the positives of them all will combine to create a lift in confidence in the market as a whole. It is like seeing the finish line in a race and knowing that just winning won't do you have to beat the clock too!
Happy Selling, Buying, Investing to all.
Rob Gorman
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