You can't get excited about interest reats if you can't refinance or buy. Real estate could quickly rebound and everyone would refinance if it weren't for two little words " Appraisal Issues" We are all just renting our homes from the lenders until we someday actually pay off the mortgage. When our "rent" declines by 25%, which the rates have fallen that much since their highs in 2008, it would make sense that everyone would jump at the chance to buy and refi now. On a $200,000 mortgage you would save about $2,500 / yr P&I. If you have appraisal issues then you can't refinance and If you are upside down can't sell so you can't buy again.
Fear of Loss ( not ever being able to afford a home if you don't buy now) and ease of access to mortgage money is what fueled our last boom and drove the US economy. The Fed doubling short term interest rates
raising rates 17 rimes in 18 months is what sunk us and started the downward spiral. So here we are today in the winter of 2009, stuck in the mud, 4 years after the 2005 peak. Getting rid of appraisal requirements for rate and term refinances and making mortgage purchase easier for buyers is a step in the right direction.... That's my $000,000.02 Bill Garrison Sarasota, Fl www.ValuesarasotaHomes.Com is full of Bank Owned foreclosures and Short Sale properties for sale in Sarasota and Manatee County, Florida That's my $000,000.02
Pete Marriott and Bill Garrison Professional Sarasota Realtors ® Prudential Palms Realty . http://www.valuesarasotahomes.com/
