It's Back! The Market

I get these upadates from my friend Chris Every couple of weeks, which I have enjoyed and found to be informative. I thought I'd start passing them along to everyone out there so you can let me know what you think about Chris' take on the market. I hope it will spur many buyers to forget the Real Estate market doom and gloom hype so you can go get those pre-approval letters. When you do come see me you will receive representation you can count on. I will be with you every step of the way helping you with the purchase of your vacation home or investment property.

Now is the time people get out there and buy some real estate. If it is your first home or your 100th now is the time to purchase while you have the upper hand as the buyer.

I hope you enjoy this info from Chris.

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Present Market Conditions
The 10 yr Treasury note is below 3% for the first time in its 46 year history. Investors flocked to the safety of government bonds on news from last weeks reports on the nation's labor market, housing market, manufacturing sector and consumer spending. Along with that factor, the Fed announced Tuesday it will buy up to $500 billion in mortgage backed securities. This statement by the Fed "This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally," indicates their goal to stimulate and support the housing market.

Expectations
The need to restructure Mortgage backed securities could come from refinancing with these lower rates. According to Kim Rupert, fixed income analyst, Action Economics, this plan by the government is a "huge backstop" for the mortgage-backed securities market. The impact of this will take time, so for the immediate watch the economic indicators this week especially Friday's Non-farm payroll report.

Guidance
Housing starts are down dramatically from last year and inventory will continue to trim down from its current 11 month supply. Along with historically low interest rates, now is an incredible time to buy. Whether you buy or refinance, there is no guarantee rates will go lower, so get with your mortgage professional today to structure the right financing for you.

Have a great week,