Give them Confidence!!!!

Mortgage Update:

Stocks were down this morning but we didn't see much movement into the bond market either which would help interest rates go down. Looks like people are holding onto their cash as there is really no clear plan on how the economy is going to get back on track. Not sure what to do. Rates did improve slightly last week and the bond market closed slightly higher than when it opened today. Stock market at the opening was at a low we hadn't seen since mid 90s. Warren Buffet has some interesting things to say today on the economy; one being that it has fallen off a cliff http://tvnz.co.nz/view/page/536641/2528704 . This just feeds that fear that everyone is feeling during these times. Not only is the big issues today deflation, layoffs, and credit challenges but the lack of confidence people have in that we will come out of this and the fear of the inflation when we do. Confidence is what needs to be projected, we are at war sorta of speak with the economy and this is a time for those on the hill to find a way to band together and to support not only a stimulus package but giving confidence back to the people.

Granted I do not have the answers but as professionals what we can do is give our clients as much of a positive message as possible.

Talk to them about:

• $8K tax credit
• how buying vs. renting is a benefit
• how interest rates are the lowest in 30 years
• how values are so low that they can only go up from here giving them equity sooner rather than later
• can possibily rent this home at some point in the future for a profit
• FHA 3.5% down
• VA 0% down
• 2^nd homes are inexpensive and rates are great
• Time to move up to that home you never that you could afford
• Even conventional 10% down with right parameters
• And anything else you can think of that to give Confidence in their decision!

Carefully float: Make sure you are keeping in contact with your clients who need to be keeping in contact with their lenders to lock or not.....

30 year fixed today FHA 3.5% down 5%; 30 year fixed conventional with 25% down 4.875%.

Details about the Home Affordability Program were released last week. More on that soon!!!!!