Mortgage Comments

Mortgage Comments

How SLOW can you GO?  The number that tells us how fast we are growing came out today.  The Gross Domestic Product (GDP) came in at a whopping 1% annualized rate of growth for the US.  This is not good.  In the past, every time the GDP slips below 2%, the economy has fallen into recession.  Clearly we are not just like ‘every time’ this time, but I’d bet the odds.   The key is consumer confidence.  When the comment of one person, albeit Warren Buffet, can make a stock jump 17% in just one day (Bank of America) you know that people are not reacting to facts but are looking for someone to tell them what is going on.  This is a reaction created by fear and uncertainty.  Fear and uncertainty are NOT good for the economy.  Add to this all the uncertainty of what regulations will finally result from the laws congress has passed (banking, health care, etc.) and, well, you get the picture.

For us in the real estate business, this spells opportunity.  The Realtors I talk to have never been busier.  Rates are, and will remain, at historic lows.  Buying power has never been and most likely will never again be this good.  This is an incredible time to buy homes for investment as well.  Homes bought to rent can actually cash flow and put monthly income into your investor’s pocket.  As Paul Harvey would say, “That’s TRUE value!”

This week Freddie Mac’s 30 yr. fixed rate survey ticked up a bit at 4.22% depending on program, credit and points.  Have a great weekend and have your buyers call us so we can get them approved to buy.