Thursday, August 4, 2011

WHAT TO EXPECT IN THE MORTGAGE MARKET



Ben Bernanke left the door open and stocks have responded well when Quantative Easing 3 was mentioned. This would be a longshot unless our economy was hit by a big external shock. The Fed doesn't want to do a QE3 if it can be avoided. The biggest negative factor on our economy could the the gradual withdrawal of fiscal stimulus. Now our economy will be more on it's own to generate growth without help from Washington.


At the moment stocks are looking favorable. An opportunity for Record year profits for S&P 500 Companies, exports are continuing to grow and there are decent investment opportunities in the US Economy. Earnings of big US multi-national companies make large cap indexes a good buy as well.


Europe is in a mess! Getting this under control will be a challenge.


The question I am asked most is how are interest rates affecting the housing market? Remember, short term rates are the ones affected by fed action in general. Commercial rates are affected by supply and demand and Mortgage rates are an absolute bargain right now. The benefit of home ownership has been neglected for some while now and the people who should be purchasing homes are not. Lets all remember that homeownership is a great forced savings plan and it should not be TOXIC. The future of great real estate fortunes are being laid right now, are you taking advantage of the opportunities?


The current trends of concern are the stability of the Middle East and major oil producers, China's cornering global markets in strategic raw materials and the US Relationship with China. Social democracies can bring revenues and commitments into balance given time.


It has been confusing the past few weeks but now we at least have a path chartered even if at times the sea will be rough. You can count on your mortgage expert to keep on top of the developments. Please contact Valerie Springer if you would like to have a credit check and possibly take advantage of the opportunities availabe right now. 205-995-7283 x 305


My name is Valerie Springer nmls 198479, Home Mortgage Expert and writer for Ask Val in Birmingham, Alabama. You may contact me by email at valerie.springer@benchmark.us or call 205-314-4775..