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.
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