Today was a great day! Sunny, over 50 degrees and the snow is melting quickly! It's been a snowy winter, and I for one am happy it's almost over. The other great news was the sounds of the 10 year bond dropping through the floor! Yes, mortgage rates are getting better once again, which is sweet music to the mortgage industry.
Are there still problems in the credit markets? Of course there are! But in reality the absolute worse thing you can do is stick your head in the sand or become defensive in market like the one we're dealing with now. This by no means is a scientific observation, but I've often thought the economic markets are much like the weather. People get depressed and defensive when it's cold and dreary all the time. Recessions and Depressions are really financial weather that frightens everyone from coming outside and participating in the markets. The banks start worrying about their losses, so they tighten credit. Potential homeowners hear the bad media hype about the markets and they decide to wait until a sunnier day. This cycle continues to feed on itself until the storm turns into a Hurricane, which leaves a vast swath of destruction.
So today was a great day. The sun was brightly shining, and interest rates dropped to new great levels. If your worried about the "financial" weather.....STOP....because your really missing out on some great buys! Now is the time to buy, these rates won't last forever, and the real estate markets will eventually turn around. If your waiting for Brian Williams, or Katie Couric to tell you everything is alright, then you'll find yourself at the back of the opportunity line.
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