Thursday, August 9, 2007

What's Next?

Okay, we all know the housing market is stagnating..do we blame the Fed's, the lending institutions or the consumers? Do we all take responsibility, are too far in debt? What's Next? When will our area stabilize- 2-6 years? Maybe it's not that bad since the decline is just 2.6% and not a 26% decline in prices. Will this severely restrict consumers with good credit?

2 comments:

James Henderson, morgage consultant said...

I believe it will be over when there is an end to the pain in the housing decline. Nobody saw the train wreck coming.

I think the first thing is that the inventory of the house supply has to reverse itself. As I view it,S&P and Moody’s didn’t see it coming, but they simply just downgraded bonds. Bear Stearns certainly didn’t see it coming, Merrill Lynch didn’t see it coming, nobody saw this coming.”

The Fed, knowing that well over 50%, 60%, 70% of the loans made in 2003, 2004, 2005 and 2006 were indexed variable rate loans, indexed one way or another to the Fed funds rate, increased the Fed funds rate seventeen times…

August 9, 2007 12:52 PM
Janice Martin said...

It appears that the market in QAC may have to wait a good 3-4 years to realize the gains, if you buy today.

August 9, 2007 12:55 PM

Post a Comment

Subscribe to: Post Comments (Atom)