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Where is the bottom of this market?

By CHRIS HAYNES

Mortgage and Lending with Peoples Home Equity Inc.

October 08, 2008 05:22 AM

Every time you open the paper or turn on the computer it seems like there is only bad news on the economy. The stock market is down over 35% over the past year, and home prices have also declined. In a recent survey it was reported that over 60% of Americans think a depression is likely. While the economy is facing some very tough times, and the financial and real estate sectors are not functioning properly, the economy as a whole is not like to fall into a depression. A recession, yes. It is my opinion that most people have panicked and the selling on Wall Street is over heated. The FED has taken drastic measures to reduce the fallout of the credit crunch and has acted quickly enough to keep the market from further meltdown. It is going to take some time for the markets to work themselves back into a normal condition. I think it is vitally important for people in the Real Estate and Mortgage profession to continue their hard work and help clients see the long term on their finances and how owning a home can and will have a very positive impact on their overall financial well being. Home prices are as affordable as they have been in over 5 years, so now is time to buy and hold, for the long term. Years into the future I think we will look back on this much as we have many other times of financial hardship, and wish we had the forethought to BUY LOW, so later we can SELL HIGH! Please let me know if your thoughts on the stock market as well as the housing market.

Thanks,

Chris

615-945-3994

www.besttnloans.com

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Dave Edwards

Dave Edwards Realty - Greenville, SC

Good thoughts. If the governement would stay out of the market we would all be better off in the long term. People are in panic mode w/ the stock market and much of that is driven by what people see, read, and hear. Our local market is doing fine, but because of all the negativity many beleive that our area has also been hard hit. However, the opposite is true. It makes the job of educating the public even more difficult.

Oct 08, 2008 05:30 AM

Brett Tousley

Keller Williams Realty - Richland, WA

Tri Cities Real Estate | (509) 420-0013

Chris, locally we have great buying opportunities! Like Dave, our area is very stable compared to the news I hear. If this panic continues, do you think we'll see rates in the low or sub 5's?

Oct 08, 2008 05:41 AM

CHRIS HAYNES

Peoples Home Equity Inc. - Mount Juliet, TN

The Mortgage Man

Hey Brett,

Thanks for the comment. Is is a funny thing with this whole mess in that rates have remained relatively higher than you would think. This is because the mortgage backed securities market has been very hard hit in all of this. Even with the stock market plunging like it has, the long term rates on a 30 year mortgage have remained around 6%, and are actually on the rise today. I hope that rates remain low, but unfortunately I don't think we will be seeing them in the low 5's anytime soon.

Oct 08, 2008 05:51 AM

Jerry Murphy, CRS, SRES

Long Realty West Valley - Anthem, AZ

Anthem, Phoenix, and Scottsdale AZ Real Estate

Good post Chris. It's unfortunate that we as Americans have a herd mentality, still, after all these years. Books written about it, hundreds of analyses on television shows, yet everytime there's trouble 95% of the people out there run with the herd. The smart 5% are the one's who capitalize on these type of opportunities.

You are right 5, 10 years from now people are going to be kicking themselves for not buying a home, or two, during this period.

Oct 08, 2008 05:57 AM

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