A quick market update, a yahoo poll, and comments
Whew! ...is it the weekend yet?!?!?
I know we have a few more days, but wouldn't it be nice to trade places with this dog for a while?!?!?
Anyway...let's get down to business. I'm sure many of you are wondering what I'm seeing in the market right now. I'm seeing a bump in activity, but much of that activity is not translating into loans. There seems to be more activity on the A-paper side of the business at this time, but overall, things are still pretty slow.
I was talking to some other reps from 3 different companies, and they were seeing much of what I have been seeing. They are looking at less loans, and what they are looking at, is somewhat tough to get funded. I can't say that I'm seeing any great FB stories right now. Just the typical stuff where you can't help the person get the cash out/payment/rate they want. I think many people are accustomed to being able to refinance and automatically lowering their monthly payments and/or getting cash out. I'm seeing lots of borrowers that 'want it all'. They want lower rates, lower payments, and more cash out...and they get mad when the broker tells them they can't have it all. It will be interesting when these people are forced to do something when their ARM adjusts.
There is a commercial on the radio in San Diego all the time for "Paramount equity and mortgage" that tells listeners that rates are going up and to refinance now...and that the average home went up over 40 thousand last year...and you should get some cash out now...yada yada yada. That said, I think borrowers are thinking about refinancing, but they are putting it off when they see what the rate/payment would be right now. I'm seeing more people that would rather keep their lower payment now, and hope for the best in the future, instead of locking in a slightly higher payment on a fixed rate loan at this time. The thought process is to keep the low payment now, and just sell when it adjusts. And we all know what happens when everybody tries to sell...or at least should happen. The CAR seems to think that prices will continue to rise as the inventory grows...but I think we tackled that in my "economics 101" post.
Along those lines, check out this poll that I found on Yahoo! (the direct link to the poll wouldn't work, so the poll will be on the right hand side of that page) The question is:
|If you're thinking about selling a piece of real estate, what's your time frame?|
|Thanks for voting!|| |
Since Jan 20, 2006
|I'm holding out for a high price. I think there's steam left in the housing market.||20 %|
|I'm actively trying to sell now.||41 %|
|I'm undecided. I don't know which economic piece of news to believe.||39 %|
Since things are slower right now, I'm being proactive and looking at other options and working on some other projects while I see exactly what is going to happen with this market. That said, what do you want to hear about?? I think I have answered a lot in the comments and through e-mails, but what else is really weighing on people's minds. I really like using the blog to educate, inform, and help people. There are lots of very experienced readers and posters other than myself....if you have questions or comments this is turning into a very good place to get some good answers and feedback.
Thanks for stopping by!