Last Tuesday Ben Bernanke and the Fed cut the Fed Funds Rate and the Discount Rate by .50 basis points causing a huge rally in the stock maket but how does it affect the housing market. The good news is we needed the 50 basis point cut and thank goodness we got it! I believe that the FED will cut again in late October. The FED has never only made one cut so history says we have at least one or two more rate cuts.
For now it will help create some much needed liquidity and lower interest rates. We will most likely need more cuts and more help to keep the housing market from conitinuing it's decline. We still have approximately 8 million adjustable rate mortgages resetting between now and the end of 2008. So the lending industry, wall street, the fed and the white house have their work cut out for them.
The next 12 months will be a great opportunity to pick up distressed properties here in Orange County. There will be great buys in all the major Orange Counties especially the larger ones like Irvine, Mission Viejo and Laguna Niguel. As a foreclosure specialist I can help guide you through the process.
For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.
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