The past few days Short term Treasury Bills and LIBOR, both over night and longer have eased.
The Treasury Bills are going up in yield, meaning the flight to qualityis backing off. The LIBOR interbank rate has been back off. This means banks are starting to lend to each other. This is what we need to get loans out to people needing credit. It will help to ease up mortgage loans for qualified buyers. There has also been some execution of mergers and acquisitions, many groups and companies are able to raise money through debt.
Confidence has to come back and is indicated better by these changes. Corporate executive need to see these improvements so not to plan layoff and make it worse. Our loan rates for mortgages will have a chance to ease as these changes take effect. Availability of mortgage money will increase as the market fells more confidence.
While we have been dazed by the financial markets, and watching the Presidential campaign other things have been improving.Crude oil has more then half itself from July highs. If you have been following my blog I called it at the top and predicted this decline. This is taking a weight off everyone. I have always felt that good things come from bad and this is one of them.
The last important indicator is gold has drop over the past 7 days. This is showing that the fear is weening. A little time and continued work by the world financial governing bodies to keep the system liquid, we should be able to see the changes in our real estate businesses.
There are many people that what to buy but are nervous, when their fears subside, we should see the market pick up readily.
Maybe one more good thing may be is that we will try to keep our feet on the ground from here on. We can't get caught up in the times and must question extremes in good as well as bad.
Let's sell Real Estate, 2009 will be a good sales year.
Richard
view my new homes for sale and some other good stuff
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