housing: Single family homes that are distressed are being snapped up - 01/28/13 08:31 AM
Hedge funds and other instituional investors are snapping up lower priced homes, doing a bit of rehab and renting them out.  They are buying these homes by the thousands from lending institutions who have foreclosed.
The supply of non-distressed homes is declining to unprecidented levels.  With the distressed homes at low levels and the rising single family home rents here.....watch out.  This is a "Black Swan" event (a totally unexpected outside event that brings about major change)!
We get frequent calls from afar seeking cheap distressed and other houses.  Forget it!  These institutional investors are accepting a cap rate that is … (0 comments)

housing: The Fed just announced a monthly increase in Mortgage Backed purchases - 12/12/12 11:52 PM
The Fed had already pledged to go into the marketplace and purchase $40 Billion in mortgage backed securities.Today that has been increased to $85 Billion per month (over $1 Trillion per year). Furthermore, it was announced that number would basically go up to unlimited until the unemployment rate declines befow 6.5%....quite a drop.
Currently the "inflationary expectations" are extremely low.  Not the actual inflation rate but what the public thinks that it will be.  The Fed said that if these inflationary expectations rise to 2.5% they would slow down (artifically stoking the mortgage market).  Whenever the Fed slows down on pumping … (3 comments)