Saturday, October 23, 2010
Tuesday, August 24, 2010
July Existing-Home Sales Fall, But Prices Rise
Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009. Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995.
Lawrence Yun, NAR chief economist, said a soft sales pace likely will continue for a few additional months. “Consumers rationally jumped into the market before the deadline for the home buyer tax credit expired. Since May, after the deadline, contract signings have been notably lower and a pause period for home sales is likely to last through September,” he said. “However, given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs.
“Even with sales pausing for a few months, annual sales are expected to reach 5 million in 2010 because of healthy activity in the first half of the year. To place in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years,” Yun added.
Mortgage Rates Dip
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.56 percent in July from 4.74 percent in June; the rate was 5.22 percent in July 2009. Last week, Freddie Mac reported the 30-year fixed was down to 4.42 percent.
The national median existing-home price for all housing types was $182,600 in July, up 0.7 percent from a year ago. Distressed home sales are unchanged from June, accounting for 32 percent of transactions in July; they were 31 percent in July 2009.
“Thanks to the home buyer tax credit, home values have been stable for the past 18 months despite heavy job losses,” Yun said. “Over the short term, high supply in relation to demand clearly favors buyers. However, given that home values are back in line relative to income, and from very low new-home construction, there is not likely to be any measurable change in home prices going forward.”
Inventory Rises
Total housing inventory at the end of July increased 2.5 percent to 3.98 million existing homes available for sale, which represents a 12.5-month supply at the current sales pace, up from an 8.9-month supply in June. Raw unsold inventory is still 12.9 percent below the record of 4.58 million in July 2008.
NAR President Vicki Cox Golder said there are great opportunities now for buyers who weren’t able to take advantage of the tax credit. “Mortgage interest rates are at record lows, home prices have firmed and there is good selection of property in most areas, so buyers with good jobs and favorable credit ratings find themselves in a fortunate position,” she said.
A parallel NAR practitioner survey shows first-time buyers purchased 38 percent of homes in July, down from 43 percent in June. Investors accounted for 19 percent of sales in July, up from 13 percent in June; the balance were to repeat buyers. All-cash sales rose to 30 percent in July from 24 percent in June.
Breakdown of the Numbers
• Single-family home sales dropped 27.1 percent to a seasonally adjusted annual rate of 3.37 million in July from a pace of 4.62 million in June, and are 25.6 percent below the 4.53 million level in July 2009; they were the lowest since May 1995 when the sales rate was 3.34 million.
• The median existing single-family home price was $183,400 in July, which is 0.9 percent above a year ago.
• Single-family median existing-home prices were higher in 11 out of 19 metropolitan statistical areas reported in July in comparison with July 2009 (the price in one of 20 tracked markets was not available). However, existing single-family home sales fell in all 20 areas from a year ago.
• Existing condominium and co-op sales fell 28.1 percent to a seasonally adjusted annual rate of 460,000 in July from 640,000 in June, and are 24.0 percent below the 605,000-unit level in July 2009. The median existing condo price was $176,800 in July, down 1.7 percent from a year ago.
By Region
• Existing-home sales in the Northeast dropped 29.5 percent to an annual pace of 620,000 in July and are 30.3 percent lower than a year ago. The median price in the Northeast was $263,800, up 4.8 percent from July 2009.
• Existing-home sales in the Midwest fell 35.0 percent in July to a level of 800,000 and are 33.3 percent below July 2009. The median price in the Midwest was $151,600, down 2.8 percent from a year ago.
• In the South, existing-home sales dropped 22.6 percent to an annual pace of 1.54 million in July and are 19.8 percent below a year ago. The median price in the South was $156,300, down 3.3 percent from July 2009.
• Existing-home sales in the West fell 25.0 percent to an annual level of 870,000 in July and are 23.0 percent below a year ago. The median price in the West was $224,800, up 3.3 percent from July 2009.
Source: NAR
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009. Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995.
Lawrence Yun, NAR chief economist, said a soft sales pace likely will continue for a few additional months. “Consumers rationally jumped into the market before the deadline for the home buyer tax credit expired. Since May, after the deadline, contract signings have been notably lower and a pause period for home sales is likely to last through September,” he said. “However, given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs.
“Even with sales pausing for a few months, annual sales are expected to reach 5 million in 2010 because of healthy activity in the first half of the year. To place in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years,” Yun added.
Mortgage Rates Dip
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.56 percent in July from 4.74 percent in June; the rate was 5.22 percent in July 2009. Last week, Freddie Mac reported the 30-year fixed was down to 4.42 percent.
The national median existing-home price for all housing types was $182,600 in July, up 0.7 percent from a year ago. Distressed home sales are unchanged from June, accounting for 32 percent of transactions in July; they were 31 percent in July 2009.
“Thanks to the home buyer tax credit, home values have been stable for the past 18 months despite heavy job losses,” Yun said. “Over the short term, high supply in relation to demand clearly favors buyers. However, given that home values are back in line relative to income, and from very low new-home construction, there is not likely to be any measurable change in home prices going forward.”
Inventory Rises
Total housing inventory at the end of July increased 2.5 percent to 3.98 million existing homes available for sale, which represents a 12.5-month supply at the current sales pace, up from an 8.9-month supply in June. Raw unsold inventory is still 12.9 percent below the record of 4.58 million in July 2008.
NAR President Vicki Cox Golder said there are great opportunities now for buyers who weren’t able to take advantage of the tax credit. “Mortgage interest rates are at record lows, home prices have firmed and there is good selection of property in most areas, so buyers with good jobs and favorable credit ratings find themselves in a fortunate position,” she said.
A parallel NAR practitioner survey shows first-time buyers purchased 38 percent of homes in July, down from 43 percent in June. Investors accounted for 19 percent of sales in July, up from 13 percent in June; the balance were to repeat buyers. All-cash sales rose to 30 percent in July from 24 percent in June.
Breakdown of the Numbers
• Single-family home sales dropped 27.1 percent to a seasonally adjusted annual rate of 3.37 million in July from a pace of 4.62 million in June, and are 25.6 percent below the 4.53 million level in July 2009; they were the lowest since May 1995 when the sales rate was 3.34 million.
• The median existing single-family home price was $183,400 in July, which is 0.9 percent above a year ago.
• Single-family median existing-home prices were higher in 11 out of 19 metropolitan statistical areas reported in July in comparison with July 2009 (the price in one of 20 tracked markets was not available). However, existing single-family home sales fell in all 20 areas from a year ago.
• Existing condominium and co-op sales fell 28.1 percent to a seasonally adjusted annual rate of 460,000 in July from 640,000 in June, and are 24.0 percent below the 605,000-unit level in July 2009. The median existing condo price was $176,800 in July, down 1.7 percent from a year ago.
By Region
• Existing-home sales in the Northeast dropped 29.5 percent to an annual pace of 620,000 in July and are 30.3 percent lower than a year ago. The median price in the Northeast was $263,800, up 4.8 percent from July 2009.
• Existing-home sales in the Midwest fell 35.0 percent in July to a level of 800,000 and are 33.3 percent below July 2009. The median price in the Midwest was $151,600, down 2.8 percent from a year ago.
• In the South, existing-home sales dropped 22.6 percent to an annual pace of 1.54 million in July and are 19.8 percent below a year ago. The median price in the South was $156,300, down 3.3 percent from July 2009.
• Existing-home sales in the West fell 25.0 percent to an annual level of 870,000 in July and are 23.0 percent below a year ago. The median price in the West was $224,800, up 3.3 percent from July 2009.
Source: NAR
Thursday, August 19, 2010
Three Reasons to Buy a Home Now
Stocks are up 50 percent from the March 2009 bottom. Some commodities have risen dramatically. The only asset class left in the cellar is real estate, says Michael Murphy, editor of the New World Investor stock newsletter.
As a result, Murphy is advising investors to buy now for these three reasons:
• Desperate sellers: Both home owners and lenders are eager to unload a flood of foreclosed and underwater properties. Buyers with the patience to push through these complex deals can save a bundle.
• Little competition. Because most people don’t have what it takes to negotiate their way through short sales and REOs, patient investors are winners.
• Low rates. Mortgage rates are at their lowest level in 40 years. If you believe inflation is inevitable, lock in now.
Source: MarketWatch, Michael Murphy (08/19/2010)
As a result, Murphy is advising investors to buy now for these three reasons:
• Desperate sellers: Both home owners and lenders are eager to unload a flood of foreclosed and underwater properties. Buyers with the patience to push through these complex deals can save a bundle.
• Little competition. Because most people don’t have what it takes to negotiate their way through short sales and REOs, patient investors are winners.
• Low rates. Mortgage rates are at their lowest level in 40 years. If you believe inflation is inevitable, lock in now.
Source: MarketWatch, Michael Murphy (08/19/2010)
Tuesday, August 03, 2010
Need an Experienced Agent??
If you are looking to buy or sell real estate in Redondo Beach or anywhere in So. California, give me a call. I am with RE/MAX Palos Verdes Execs, the company with the most market share in the whole South Bay area from San Pedro to Beverly Hills! I have over 22 years of experience and can save you money. I have many references. Sellers: Please google my name: Jack McSweeney, and see the exposure I can get you on the internet. If you are a buyer, I hear about properties not on the MLS all the time or you can see properties on the MLS at http://SoBayCalMLS.com . Also see my main webpage at http://JackMcSweeney.com . I am here to help you. Call me now at 310 346-0391, if I don't answer, I will return your call within 15 minutes. EXPERIENCE... It works Everytime!
Thursday, June 17, 2010
Senate Extends Tax Credit Closing Deadline
The U.S. Senate voted Wednesday to extend the home buyer tax credit closing deadline to Sept. 30, giving an estimated 180,000 buyers who met the contract deadline of April 30 extra time to close the transaction.
The extension was added to a bill to pay for jobless benefits.
The NATIONAL ASSOCIATION OF REALTORS® estimates that one-third of qualified applicants have been notified that they will be unable to close by the deadline. The Mortgage Bankers Association says delays are caused largely by the volume of transactions.
The measure still must be approved by the House.
Source: Associated Press
The extension was added to a bill to pay for jobless benefits.
The NATIONAL ASSOCIATION OF REALTORS® estimates that one-third of qualified applicants have been notified that they will be unable to close by the deadline. The Mortgage Bankers Association says delays are caused largely by the volume of transactions.
The measure still must be approved by the House.
Source: Associated Press
Friday, May 21, 2010
Has your real estate market stabilized?
No matter where you live, sign up and find out what things are selling for in your area! It will then email you once a month and keep you up on all sales and listings!
Thursday, March 25, 2010
Governor Expected to Sign Homebuyer Tax Credit
On Monday, the legislature passed AB 183 (Caballero & Ashburn) which would provide $200 million for homebuyer tax credits. The Governor is expected to sign AB 183 into law before the end of the week. C.A.R. supported this important legislation.
AB 183, formerly SB 4 of the sixth extraordinary session (Ashburn), is part of a package of four bills, passed at the request of the Governor, designed to help stimulate the economy and create jobs. The bill allocates $100 million for qualified first time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit. This credit is equal to the lesser of 5% of the purchase price or $10,000, taken in equal installments over three consecutive years. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state).
AB 183, formerly SB 4 of the sixth extraordinary session (Ashburn), is part of a package of four bills, passed at the request of the Governor, designed to help stimulate the economy and create jobs. The bill allocates $100 million for qualified first time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit. This credit is equal to the lesser of 5% of the purchase price or $10,000, taken in equal installments over three consecutive years. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state).
Friday, February 19, 2010
For Sale: Classic Hollywood Riviera Spanish Home
Your chance to own one of the original Spanish homes in the Hollywood Riviera section of Torrance. 4 BR, 2.5 baths (Jack and Jill) 2259 sf on a 6300 sf lot. $1.300,000Open House Sunday, Feb. 21, 2010 1-4pm. Should sell quickly. Jack McSweeney / Agent REMAX Palos Verdes Realty 310 346-391
Monday, February 08, 2010
Don't wait to buy if you like low interest rates...
We have had low interest rates for a long time. It looks like that is about to change so don't wait! It is time to buy now.
Click the link to see the full "Inman" article.
Click the link to see the full "Inman" article.
Thursday, October 15, 2009
Highest apartment vacancy rate in 23-years
Not only has the current economy affected homeowners who can no longer afford their mortgages, in California it has also been a huge issue for Landlords and tenants. This week it was reported that apartment vacancies rose to the highest point in 23-years. This comes as a surprise to many professionals because a lot of landlords have been lowering rent, to make it more affordable for tenants to stay in their current units or to get new ones into the vacant units. Many of the vacancies sit for rent, for weeks, even months until a potential renter comes in to even consider it. The increase of vacancies has slowly been happening since about 2007.
It’s a chain reaction in this industry. Tenants are becoming unemployed, because employers can no longer afford to keep them, in turn having to forfeit their leases or negotiate less of a rent each month. When a landlord loses a tenant, the lose money. When a vacant unit just sits, that’s money out the door everyday, that they can be using toward the mortgage on the building. For investors (landlords) who hold income property, when they are able to occupy the vacant units, the landlords are most likely taking a lot less than market value or holding certain move-in specials, in some cases giving these units away for free, just to get them occupied.
Experts have said that vacancy rates have risen for the past 3 quarters since 2007 and are expected to raise to 8 percent by the fourth quarter of this year, not good news for landlords. It could be good news for the tenants who cannot afford high rental costs though. A lot of the experts have said that this could have been prevented, if landlords would have done their homework and lowered rents before the downfall occurred.
The fact that landlords are being forced to lower rent, is causing a lot of these buildings to go into default, then causing more financial trouble for the landlord. In most cases, these buildings and the income that comes from them, is the owners livelihood.
One bedroom and single apartments are being said to be sitting for the longest. Because of the increase in job loss, people can no longer afford to live alone and are being forced to get a roommate or move in with family. When speaking with a local On-Site manager, she mentioned that 2 one-bedroom apartments, that share common wall, had been sitting for months. Prospects were interested, but couldn’t rent the units because of the limit that is put on how many tenants can live in a one-bedroom, turning the prospective tenant away to find something else, that suits their needs. She had even suggested to the landlord to knock the wall out making it a two-bedroom, in turn making it more appealing and easier to rent in today’s market.
Experts have also said that until the current unemployment rate goes down drastically, that the vacancy rate will continue to be on the rise. Most do not see that happening in the near future. Without steady income, one cannot afford to rent.
It’s a chain reaction in this industry. Tenants are becoming unemployed, because employers can no longer afford to keep them, in turn having to forfeit their leases or negotiate less of a rent each month. When a landlord loses a tenant, the lose money. When a vacant unit just sits, that’s money out the door everyday, that they can be using toward the mortgage on the building. For investors (landlords) who hold income property, when they are able to occupy the vacant units, the landlords are most likely taking a lot less than market value or holding certain move-in specials, in some cases giving these units away for free, just to get them occupied.
Experts have said that vacancy rates have risen for the past 3 quarters since 2007 and are expected to raise to 8 percent by the fourth quarter of this year, not good news for landlords. It could be good news for the tenants who cannot afford high rental costs though. A lot of the experts have said that this could have been prevented, if landlords would have done their homework and lowered rents before the downfall occurred.
The fact that landlords are being forced to lower rent, is causing a lot of these buildings to go into default, then causing more financial trouble for the landlord. In most cases, these buildings and the income that comes from them, is the owners livelihood.
One bedroom and single apartments are being said to be sitting for the longest. Because of the increase in job loss, people can no longer afford to live alone and are being forced to get a roommate or move in with family. When speaking with a local On-Site manager, she mentioned that 2 one-bedroom apartments, that share common wall, had been sitting for months. Prospects were interested, but couldn’t rent the units because of the limit that is put on how many tenants can live in a one-bedroom, turning the prospective tenant away to find something else, that suits their needs. She had even suggested to the landlord to knock the wall out making it a two-bedroom, in turn making it more appealing and easier to rent in today’s market.
Experts have also said that until the current unemployment rate goes down drastically, that the vacancy rate will continue to be on the rise. Most do not see that happening in the near future. Without steady income, one cannot afford to rent.
Wednesday, October 14, 2009
Gov. Arnold Schwarzenegger approved seven new mortgage laws
AB 260 by Assemblyman Ted Lieu (D-Torrance). The measure, which takes effect Jan. 1, tightens restrictions on mortgage brokers so they cannot steer borrowers to riskier, higher-interest loans when they qualify for less-expensive ones.
* SB 36, by Sen. Ron Calderon (D-Montebello), sets licensing requirements for all residential loan originators.
* SB 239, by Sen. Fran Pavley (D-Agoura Hills), makes it a felony to commit fraud on a mortgage loan application.
* AB 329, by Assemblyman Mike Feuer (D-Los Angeles), requires lenders to give more and clearer information to those interested in reverse mortgages, which let seniors borrow against their homes' equity.
* SB 237, by Calderon, creates a registration program for appraisal management firms.* AB 957, by Assemblywoman Cathleen Galgiani (D-Stockton), allows buyers of foreclosed homes to choose local escrow officers, rather than being forced to use the escrow company chosen by the seller.
* AB 1160, by Assemblyman Paul Fong (D-Cupertino), requires that mortgage loan documents be written in the same language the verbal negotiations were conducted in.
* SB 36, by Sen. Ron Calderon (D-Montebello), sets licensing requirements for all residential loan originators.
* SB 239, by Sen. Fran Pavley (D-Agoura Hills), makes it a felony to commit fraud on a mortgage loan application.
* AB 329, by Assemblyman Mike Feuer (D-Los Angeles), requires lenders to give more and clearer information to those interested in reverse mortgages, which let seniors borrow against their homes' equity.
* SB 237, by Calderon, creates a registration program for appraisal management firms.* AB 957, by Assemblywoman Cathleen Galgiani (D-Stockton), allows buyers of foreclosed homes to choose local escrow officers, rather than being forced to use the escrow company chosen by the seller.
* AB 1160, by Assemblyman Paul Fong (D-Cupertino), requires that mortgage loan documents be written in the same language the verbal negotiations were conducted in.
Tuesday, October 13, 2009
NEW LISTING in South Redondo Beach, CA., 90277
For Sale: 805 N Juanita Ave. #B, Redondo Beach, CA 90277
$849,000
3 Br, 2.5 Baths, 2226 sf, Rear Unit
Large Kitchen, private back yard.
Call me: Jack McSweeney / 310 346-0391
DRE# 01027223
Wednesday, September 23, 2009
New Townhome listing coming...
Located in South Redondo Beach. It will go on the MLS on Monday, September 28th. Very nice two on a lot, rear unit.
Fed Holds Rates
The Federal Open Market Committee voted 10-0 to maintain the target federal-funds rate for interbank lending at a record-low range of zero to 0.25%. "Economic activity has picked up following its severe downturn," the Fed said in the upbeat policy statement it released at the conclusion of its two-day policy meeting.
(WSJ)
(WSJ)
Monday, August 17, 2009
Tax Credit - You need to act now!
Real estate professionals report that first-time home buyers are flooding the sale market, pressed to finalize a deal before the federal government's $8,000 tax credit offer expires on Nov. 30.
Because mortgage approvals, residential inspections, and other steps in the buying process typically take about two months, buyers hoping to take advantage of the incentive will need to have a contract by the end of September.
The new flurry of activity now as house-hunters try to meet the deadline is triggering bidding wars and energizing the property market, which historically is slow at the end of summer. As a result, more homes are getting their full asking price.
-realtor.org
Because mortgage approvals, residential inspections, and other steps in the buying process typically take about two months, buyers hoping to take advantage of the incentive will need to have a contract by the end of September.
The new flurry of activity now as house-hunters try to meet the deadline is triggering bidding wars and energizing the property market, which historically is slow at the end of summer. As a result, more homes are getting their full asking price.
-realtor.org
Wednesday, August 12, 2009
WSJ - Fed Suggests Economy Is Stabilizing
U.S. Federal Reserve officials on Wednesday left official interest rates near zero but suggested the economy is on more stable ground, more confirmation that the severe recession is either already over or will be very soon.
Thursday, July 16, 2009
Palos Verdes Estates Luxury Ocean View home
1484 Via Coronel
Palos Verdes Estates, CA. 90274
This Ocean View home has been extensively remodeled.
5 Bedrooms + Office, 4.5 bath
4883 Sq.Ft, 15,000 Sq,Ft Lot
4 Par Garage, Black Bottom Pool
Formal Living Room, 2 Family Rooms
$2,900,000
Jack McSweeney
DRE#01027223
310 346-0391
Click the link for virtual tour and more pictures.
This Ocean View home has been extensively remodeled.
5 Bedrooms + Office, 4.5 bath
4883 Sq.Ft, 15,000 Sq,Ft Lot
4 Par Garage, Black Bottom Pool
Formal Living Room, 2 Family Rooms
$2,900,000
Jack McSweeney
DRE#01027223
310 346-0391
Click the link for virtual tour and more pictures.
Wednesday, May 06, 2009
Great New Listing In North Redondo Beach
2506 Clark Lane, Redondo Beach, CA., 90278
FOR SALE:
Fabulous, Big, 2931 Sq.Ft Townhouse. It has 3 Bedrooms (the 4th was converted to the closet you deserve, off the Master) Loft and 3.5 Baths. All for $725,000
SOLD in 3 days!
Friday, April 17, 2009
The Flippers are coming back
It was only a matter of time. This week I got 3 separate calls from people looking for houses and when I asked what they wanted in their new homes, they all said "Oh, it's not for me personally, I want a real deal, put a few bucks into fixing and putting it right back on the market". The last time I heard that was in 2001. They're Back!
To me, this is a good indication that the real estate bottom is near. Interest rates are low. Investors are returning. There are real bargains to be had and the stock market is still too scary for most people. Where do they turn? REAL ESTATE.
The best barometer of all... My phone is ringing. http://sobaycalmls.com/
To me, this is a good indication that the real estate bottom is near. Interest rates are low. Investors are returning. There are real bargains to be had and the stock market is still too scary for most people. Where do they turn? REAL ESTATE.
The best barometer of all... My phone is ringing. http://sobaycalmls.com/
Wednesday, March 18, 2009
Buy or REFI now.
"The Fed said it will buy up to $300 billion in longer-term Treasurys and buy hundreds of billions of dollars more in mortgage-backed securities in an effort to aid the ailing economy. Coming into Wednesday many analysts argued that the Fed was unlikely to take such a bold step. The move thus shocked markets, causing an immediate rally in stocks and pushing bonds up dramatically within minutes of the announcement of the Fed's move."
"By buying Treasurys, the central bank is increasing the amount of money in the system in a similar fashion to reducing interest rates. The move could lead to lower mortgage rates and more favorable spreads for banks."
-WSJ
This could be the opportunity you have been waiting for because it looks like interest rates will be coming down even more very soon. You could see the conforming loan interest rate fall to 4% - 4.25% range from its current 4.75% - 5% range now. If you are thinking about buying or Refinancing your home, now is the time. Just my humble opinion.
"By buying Treasurys, the central bank is increasing the amount of money in the system in a similar fashion to reducing interest rates. The move could lead to lower mortgage rates and more favorable spreads for banks."
-WSJ
This could be the opportunity you have been waiting for because it looks like interest rates will be coming down even more very soon. You could see the conforming loan interest rate fall to 4% - 4.25% range from its current 4.75% - 5% range now. If you are thinking about buying or Refinancing your home, now is the time. Just my humble opinion.
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