Rates under 5%-Maybe

I still hear people talking about how difficult it is to get a mortgage. Let me tell you that nothing can be further from the truth. What we have today is what was the mortgage standard in to 70's and 80's. Some of my Realtors still remember qualifying their own buyers for FHA mortgages. Remember those 29% and 41% DEBTS RATIOS? Well nothing has changed. FHA still has the same standards, but will allow for even higher debts ratios. They still will allow for "Less Than Perfect Credit" and can still do loans with credit scores under 600. So what has changed? NOTHING! The only exception in today's lending world is that so called "Liar's Loan." We were allowed to "State" income and assets, no one checked and almost everyone got their money, the buyer, the loan officer and of course the Realtor.

The real answer to turning this economy around? Interest rates. Last week when rates dropped below 6.00% for 30 years, my phone (that I thought was broken) started ringing. Think if we could see a 30 year rate under 5% (and this may happen) how many people would re-finance. Not all of the home owners are upside down. How many home shoppers would Buy? The unemployment rate will drop and our economy would see a small rebound.

And the people buying, actually could re-pay the mortgage.