Hello Friends, Clients, Affiliates, and All:
The big news of the morning - Goldman Sachs downgraded Citigroup to a "Sell" from a "Hold", saying that Citi could have to write off an additional $4 Billion due to sub-prime mortgage related losses. This announcement has applied pressure on Stocks, which in turn has boosted the Bond Market slightly higher. I will continue to recommend Floating as long as Bonds remain above this floor.
Is the sky falling? The facts about Foreclosures in Washington: According to the Mortgage Bankers Association (MBA) which tracks data on 85% of all mortgages in the USA (approximately 44 millions), the foreclosure rate reported in the State of Washington as of June 2007 is .49 percent (less than ½ of 1 percent) whereas nationally it is 1.40 percent. Looking back to second quarter of 1997, foreclosures were at .50 percent which was 54% better than the national rate of 1.08% in 1997. We are slightly better today than we were 10 years ago. That is good!
Also, according to the MBA, Washington is currently ranked 47 in delinquencies and 49 in foreclosures inventory-out of a possible 50 states, so that is fantastic! We live in a time where interest rates are low, we have a solid local job market with low unemployment, but consumer sentiment has been negatively impacted by the media by their incorrectly mixing our "local news" with "national news" (that is, what is happening in California, Florida, Nevada, Arizona, Michigan, etc).
I and many others think that while there are challenges, no matter, opportunity still abounds in real estate, purchases, refinances, and the like, etc. As we all basically know, life must always goes forward and must be lived, challenges do occur from time to time, but I think it is important to strive to always know the facts, not to always look through rosy glasses, yet not to forget the positive. As such, please don't unknowingly accept misleading media reporting-as it could be costly to you and all. Live life, but don't live in fear!
If you have questions or concerns relating to the real estate marketplace, perhaps a home equity line of credit, a mortgage refinance, or a residential or investment purchase, please do contact me and I will gladly assist you. If I do not have the perfect answer to a particular question, I will find the answer or refer you to a trusted professional who can assist you. We are here to help!!!
Have a great day!
Greg Rielly, Certified Mortgage Planner
Team Rielly/Mortgage Advisory Group, Everett, Snohomish County, WA.
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