Capital Hill has been a pretty busy place the last couple of days holding hearings over whether Roger Clemens used steroids and today both Treasury Secretary Paulson and Federal Reserve Chairman Ben Bernanke addressed the Senate Banking Committee.
As Ben said and Paulson agreed we aren't going to have a recession but we will be experiencing some economic "tough times" in 2008.
They certainly weren't encouraging words to the bond market as we found them falling below the 50 day moving average resting above the 100 day moving average for support. We haven't seen them at this level since July 2007.
While they are saying we will experience slow growth in 2008 it is still a great opportunity for home-buyers and homeowners refinancing. Especially those with the jumbo loans because the conforming loan limit has been raised and is capped at $729,750 or 125% above the median price of homes in your area. In San Diego this means jumbo loans are capped at $729,750 since our median price is $595,000 (x 125% = $743,750). What a wonderful opportunity, but remember the new conventional loan limit expires December 31, 2008.
Talk about spurring the economy forward, home buyers and those who refinance will have hundreds of dollars each month to use for other purchases. Now that's an "economic stimulus" that keeps on giving.
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