RE-ALIGNMENT

I have been telling you for a while that all the bad news from Wall Street, lenders closing, federal reserve interventions, etc.... are good news for purchases and refinances, and here is why:

First, by removing from the market those "affordability" programs created during the last ten (10) years and leaving in place the true and tried Fannie Mae and Freddie Mac conforming offerings, the market will stabilize. (see blogs 8/15 and 8/16 conforming/jumbo)

Second, while this is taking place, properties lost to foreclosure and developer inventories of unsold properties flood the market causing prices to drop. This is happening across the country.

Finally, interest rates are NOT rising because that will further depress the market. There is pressure or hope that the federal reserve will cut rates in September when it meets on that subject but there is no guarantee.

My advice is that you should act now act because the rates are low, the inventory of properties is high and the prices are down. Long gone are the teaser rates, the no income, no assets, no job programs, welcome back to responsible lending.

Contact me by phone at 773-562-6972 or e-mail me at info@p2funding.com
Free subscription to this blog, just sign up below.