Slogging Through the Existing Home Mortgage Morass
Now that we know the reasons – greed, foolishness, gullibility -- we are bogged down in a national mortgage mess, the next question is how do
we get out of it? Major lenders are attempting to extricate themselves by offering troubled mortgage holders (those that are qualified) an opportunity to restructure their problem loans. Makes sense. The
lenders don’t want to go through the foreclosure process and homeowners don’t want to lose their homes, so isn’t it easier to simply work things out to their mutual benefit?
The sharp decline in existing home sales in September and October illustrates how badly the credit markets froze during July and August. We now
have on hand the largest inventory in 12 years, the equivalent of a 10.5 month supply. A balanced market should normally contain an inventory of a 6 month supply.
Mortgage interest rates were more favorable in September (6.38%) than in August (6.57%), a good sign. A Halloween treat from the Federal
Reserve, a .25% decrease in the federal funds rate, is expected to further significantly decrease mortgage rates in the coming months.
Is your window of opportunity right now in Sedona Arizona?
In real estate the news is always good for someone, and in this case, the someone is any serious buyer. There are two main reasons people by
homes. Property taxes and qualified home interest are tax deductible and it is an investment that, in the long run, will protect the homeowner from the ravages of inflation. Over the past 20 years,
investments in homes have far outpaced inflation. The acquired equity can be borrowed against it in most states, including Arizona.
So is now the best time to buy your Sedona dream home? You probably won’t know that for sure until further into 2008, but based upon Sedona’s
past history, it is likely that right now is an especially good window of opportunity.
If you are looking for the perfect real estate opportunity
in one of the most beautiful places on earth,
please give me a call: 928 300 5050.
|
