Understand the Fed Cut Rate Another .5% this afternoon.

[Ray Miller]

Where do we go from here?

More Refis?

More FHA?

More Fannie?

Will things improve in the Real World?

Will AMCs cut fee's even more if work picks up?

What will happen in the other markets over night?

 

[Zmcraney]

One of our local clients who always sends us rate sheets thinks they're fixing to start going back up. The rates have been all over the place here lately.

 

[moh malekpour]

Where do we go from here?

More Refis?

More FHA?

More Fannie?

Will things improve in the Real World?

Will AMCs cut fee's even more if work picks up?

What will happen in the other markets over night?

The rate cut couldn’t even impress the stock market but the gold future jumped to record high[Link]
.
The stock market that usually rallies on any good news from anywhere in the world went down because bond insurers are in trouble. [Link]

Bond insurers insure mortgage back securities and due to massive foreclosures, they are out of capital and if the insurance company is in trouble, lenders that have to sell their loans in the secondary market are in trouble.[Link]

It is too early to say the ramification of the rate cut becaus right now,the fed is between A ROCK and A HARD PLACE [Link]

 

[Frederick]

Trying to head off another big round of foreclosures due to resets.

 

[Zmcraney]

Am i wrong in thinking that the fed cutting the rates is like putting a band aid on a gunshot wound??

 

[Terrel L. Shields]

Am i wrong in thinking that the fed cutting the rates is like putting a band aid on a gunshot wound??

Personally, I would consider that an astute observation... The economy overall isn't hurting, its housing that is dragging the markets down and will continue to do so because people who are upside down cannot and have no incentive to refi. It's smarter for them to walk away and let the house sell for "what its really worth". The Fed is jousting the windmills and pandering to Wall Street. BTW, one Fed governor opposed any rate cut.

 

[Workbox]

Just got and email from NAR to push for FMNA to raise the loan Limits.

 

[Greg Bell]

Housing most always leads the U.S. into recession.This is the biggest downturn since 1931 so you do the math.The average time for a recovery in Real Estate is 10 to 12 years for values to return to a net even amount.Last quarter grew at .6 Percent , sounds like a negative for first quarter 2008.The consumer will falter and the recession will be full blown in six months.It's going to get really ugly with Commercial Real Estate to follow.Quick , buy some beans and ammo..

 

[Zmcraney]

Just got and email from NAR to push for FMNA to raise the loan Limits.

Isn't that how we got into this bind in the first place...

 

[Terrel L. Shields]

NAR doesn't care about whether anyone can pay for it, they just want to churn properties...