You make a good point. The funny thing is that even if they do cut, I think they're not going to suddenly find a new crop of homebuyers to prop this market up. It's past that. These Alt-A loans are going to be the thing that breaks the camel's back. They're ugly loans written to people with unverified incomes for the most part and most people can't just refinance proprties. If you buy something in a bubble market with a teaser rate and get a negative amortizing loan, when that rate adjusts are you going to pay a higher interest rate on 115% of the purchase price of an overpriced property? I doubt it. Is it going to be easy for you to get a new loan on another property when you're defaulting on your current one? I doubt it. These reset rates are going to be the kicker. The days of refinancing are over because equity isn't going up endlessly like it did from 2002-2005 in RE markets...the next few months are going to bring a shock to bull crowd I think. Glad a few others here see it the same way...it's amazing to me how the spinners on CNBC ignore the guy warning about a mortgage crisis to focus on IPOs and bull dynamics.
wait, oil up again today more than 80 cents, transports higher as well as oil jumps nearly 3 dollars. Dow could make its 5th day of gains in a row!!!! Again another slow day in the nasdaq, doing nothing at all.
So what? I agree it's a big news item...but to pretty much glance over the economic indicators like home numbers to cover an IPO of a Huge Private Equity company is still spin...sorry.
I'm not saying you're not saying it! I know you know and that's why you said it now...lets just agree to both know now that we've both said it. Capice?
Gidday all! I am so dizzy from the spin i can barely sit in my chair lol. There is a positive from all this spin folks,the market will give us believers of reality a much higher plateau to short from. Bring it on Wally street hookers bring it on.
My house was listed a couple months ago... $800k range in Los Angeles. When it was first listed my agent said 2-4 months. Few weeks later it went to 4-6 months. Yesterday he said 6-8 months. The worst is definately not over..its just begining. Hey another flat day is a GOOD day for those of us who believe this correction isnt over.
Hi Anunakki I live in Waterloo Ontario Canada,home of RIM headquarters,many universities ,colleges etc.. My home I purchased in 1998 for $108k, it is a 3 bdrm semi. I am going to be listing it in April for apx $225.000 will probably sell for the 200 range. I figure it is time to lock in the gains before the U.S problem reaches here. One thing I know is there are three homes all stand alone types right in my zone ranging from 249k to 300k. These homes have been on the market for the whole winter and have yet to sell,there is also a public and middle high school in walking distance. All amenities close by and a demand for university housing. Given these facts in the past homes here in the zone sold in a matter of days to a couple of weeks. Things are changing to the North in igloo land. L