Mortgage-backed bonds have finally hit the brakes on their recent skid and the FNMA 5.5% bond is sitting at +34 bps right now. With some serious instability in the markets (DOW is down 150 pts.) and the horrible events that unfolded this morning in Pakistan, money is on a flight to safety. I think we may rally in the last few days of the year to finish on a strong note as bonds still remain a nice bargain at their current levels.
What does that mean for the real estate market? For now, rates will remain in the low 6% range and at least in the Bradenton/Sarasota area, I've seen borrowers starting to pull the trigger on buying. Good rates and great deals are a match made in heaven. I've got a client buying a property for $106,000 that appraised for $172,000. As an investor, you can actually cash-flow on a property again!
Is anyone else seeing some buying activity in their market? I'd love to hear some positive reports!