Ok people..... here is my spin on what is needed to be done today by the Fed.
I think the real estate / mortgage world is in need of a major shot of adrenaline. The real solution will arrive when the market starts turning upward yet again. In the meantime however, I think the Fed needs to inject some false hope. They need to create some excitement.
The way to do that is to drop the prime by .50% basis points. And I also believe they need to indicate that there will be more room for further rate cuts - this year.
Refinances are up and rates are down but there still seems to be doom and gloom in the air. If there were a few more arte cuts and the excitment that people can actually refinance into a rate the same or better than their current adjustable rate, that people can actually buy cheaper than they could a few years back... well - that is my spin on how to turn the industry around
that along with common sense underwriting and make sense loans of course...
Rates should head down and it would be a wonderful time to buy.... maybe even that second home at the beach that someone else can no longer afford... deals are out there... we need the Fed to help stimulate the excitment to set peoiple on their way to get them!!!
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