ONE HALF POINT OFF BY THE FED!

GOOD NEWS!
It happened as expected and hoped by the entire market. The immediate effect was a huge increase in the dow jones at a magnitude not seen recently. That is good news for those who have been waiting to refinance or purchase property.

WHAT IS NEXT?
Credit seekers expect an increase of liquidity that will result in lower rates for credit cards, home loans and corporate financing. This morning, mortgage rates showed an improvement over the previous weeks and many hope that this trend will continue.
Is this enough to stem the flow of foreclosures and avoid a recession? The answer is a clear no because this cut alone does not address the fundamental causes of the current malaise. People are still afraid to jump in the market and the changes will be gradual.

RECORD FORECLOSURES.
Foreclosures hit an all time high recently, this contributes to both decrease in property values and a ballooning of the inventory. It will take a while before all the properties are absorbed by a reluctant pool of buyers.

TIME TO ACT.
If you have been putting off that refinancing or purchase, it is time to review your options.
Call 773-562-6972 and ask for John Palla.