My New Blog

With the inital reaction to the bailout bill being positive the Dow rose 300 points in early trading. But this did not last long as the unemployment figure confirmed we are heading into a deep recession. The Dow ended the session down 157. Overall this bailout package can only be seen as a positive development for the mortgage lending industry. Hopefully most of the major financial institutions consolidations are behind us. With the high levels of unemployment expected to continue and rise,  I expect the financial turmoil will be with us for some time. I believe mortgage rates may begin to trend downward, but credit conditions will remain tight even with the passage of this 700 Billion dollar package.

Within all the doom and gloom that has been a steady drumbeat the silver lining of the dark cloud maybe showing. Across the nation and in California the number of sales of existing homes is rising. Yes, prices are still falling and we may not have posted the bottom yet, but this is a encouraging sign. As the foreclosures have made prices more attractive buyers who can qualify for financing should begin taking a closer look at getting off the fence and into some good Real Estate. Even if we are to enter a prolonged recession Real Estate should prove to be a good long term investment at these prices. Sellers are more willing to negotiate and buyers who step forward will most likely look back in a few years and be grateful that they pulled the trigger and made the purchase.