Priced right REOs are moving fast

[30ashopper]

But that was when the most were sold too. So based on the total number of places sold during the '05-'06 bubble and the rate of places being sold now--it may take years to absorb the over-priced bubble-era investulator inventory--especially since the Fog This Mirror™ loans are no longer available.

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...and Bernake is going to have to raise rates here at some point, inflation is rising at a fast clip and energy costs continue to rise. When he does, it in turn will hurt bank recoveries, causing more tightening in the lending markets, and more failures.

2009 plus the first half of 2010 are shaping up to be really terrible times overall. If you're not in a defensive position financially, you should consider doing so, and soon. The housing turn around though should start to show up in early 2010, with people dumping stocks and investing in real estate again.

 

[Bobby J]

We should all be so lucky...right Bobby?
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I sure hope so Shelly.

 

[Smiling JOe]

...and Bernake is going to have to raise rates here at some point, inflation is rising at a fast clip and energy costs continue to rise. When he does, it in turn will hurt bank recoveries, causing more tightening in the lending markets, and more failures....

I watch the lender rates, weekly, and am already noticing an up-tick in rates.

 

[Mango]

...and Bernake is going to have to raise rates here at some point, inflation is rising at a fast clip and energy costs continue to rise. When he does, it in turn will hurt bank recoveries, causing more tightening in the lending markets, and more failures.

Honestly, I can't see how .25 here or there is going to make a dent right now with this economy and in addition, risk a flat yield curve.

As far as Bank mortgage rates being higher, that has nothing to do with hedging what the Feds next move may be, the bond market determines that. It has everything to do with offering a more profitable securitization, and also it's near quarters end.

 

[Smiling JOe]

Regardless of why rates are increasing, it will as mentioned, affect sales of real estate to some degree.

 

[Mango]

Regardless of why rates are increasing, it will as mentioned, affect sales of real estate to some degree.

Sorry, haven't read the whole thread in its' entirety, and yes, it may stall some buyers who may wait for their price if rates kick up a bit, but historically, or let me say, as long as I have been in the business, 22 years.....which doesn't age me as much, when prices are right, rates are not as important, and a .50 %-1% spread increase in rate, for example is not as relevant, especially in a thriving economy. I remember 15 years ago when I bought my house, the 30 year rate was 7.25%, and I thought that was great compared to 10-11 percent in the late 80's. It's all perspective.

Also, I may add, it's June and some people buying are trying to get in new homes by the time school starts. I'd be curious to see and come back to to this conversation again in September. I also think the stock market this summer will cause people to flee to the security of bonds, and that may lower rates a bit.

 

[SHELLY]

Also, I may add, it's June and some people buying are trying to get in new homes by the time school starts. I'd be curious to see and come back to to this conversation again in September. I also think the stock market this summer will cause people to flee to the security of bonds, and that may lower rates a bit.

With inflation raging, folks will be demanding a higher interest rate in return for locking their money up in newly issued bonds...that being the case, the prices of the outstanding bonds (@ their present miniscule rates paying out in a depreciating currency no less) will tank, subsequently spiking the yields -- together they'll result in pushing mortgage rates even higher. Increasing mortgage rates will put downward pressure on housing prices.


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[Mango]

With inflation raging, folks will be demanding a higher interest rate in return for locking their money up in newly issued bonds...that being the case, the prices of the outstanding bonds (@ their present miniscule rates paying out in a depreciating currency no less) will tank, subsequently spiking the yields -- together they'll result in pushing mortgage rates even higher. Increasing mortgage rates will put downward pressure on housing prices.
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So, is this your way of telling us cash, maybe gold, and your personal favorite, corn, may be King?

 

[SHELLY]

So, is this your way of telling us cash, maybe gold, and your personal favorite, corn, may be King?

You heard it here first.
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