It has been said that you should always look for the silver lining. That might be hard to do right now for some as we appear to be looking down the barrel of a rec..., wait, let's just say leaner economic growth than previously experienced. This is an election year, 'et's be politically correct.
The silver lining for those of us in Real Estate and Home Financing is lower rates. Why does the impending leaner economic growth :) mean better rates. Well, a day like Monday on the Asian markets sends traders from volatile but high yield potential stocks to predictable modest yield bonds.
And here's the kicker that 99% of people don't know. Mortgage rates are tied to bonds - mortgage backed securities - NOT the Prime Rate like most people assume. When money flows to bonds, bond prices go up and this drives the yield on bonds down - that's what you and I pay to borrow the money.
Get ready for buyers to get off the bench and into the game because their dream home is now a little bit cheaper every month. And by the way, if you'd like to market to your past customers to see if its time to sell or perhaps refinance, I'd love to work with you on it. :)
Kevin Michelson, CMPS, MBA is one of the few mortgage originators in the state of Tennessee to hold the prestigious designation of Certified Mortgage Planning Specialist (CMPS). He is a Home Loan Consultant for Countrywide Home Loans in Brentwood, TN - Countrywide's #1 branch for purchase originations. Additionally, Kevin earned his Masters of Business Administration (MBA) from Nova Southeastern University bringing advanced concepts to his clients' mortgage plans and his referral partners marketing plans. He believes that if he puts others first, he'll never finish last. Kevin and his family are proud to call Williamson County, TN home.