Last Horahhh?!?!

Rates aren't really dropping to record lows, but we've seen a few days of the treasury yields go in our favor.

With all the turmoil in what the economy is going to do, especially with every financial article that I've read saying that even though the 4th quarter was better than expected, they still see signs of a declining economy starting off the new year and the gains will not be sustained.

Every bone in my body tells me that in order to keep the Real Estate market somewhat alive, the Fed will have to continue it's purchasing of MBS and keep rates low. Bernake basically said that the Fed rates would stay low for the next year or so, but no one is addressing the fact that when the Fed gets out of buying MBS we should see a natural rate hike, even if it's just by a half a point.

That might not sound big but believe me, the already slowing RE market will continue to slow and the refinance will drop off dramatically. We need your help. YES YOU!! Write or email your congress person, senate person and even the white house (all info easily found by Googling each branch) to extend the Fed's purchasing of Mortgage Backed Securities and temporary Fannie and Freddie guidelines. This will help you and be good for the economy.

As for anyone looking to refinance or even purchase, get off the fence and do it now. Stop waiting and get those applications in. With the new guidelines and low rates everyone is getting backed up. We've got the time now but if you wait another month or two to start, you quite possibly could miss the boat.

As always, feel free to write willie@1bearfinancial.com or call 818 264-0999 to get your loan started. We're extremely busy but we'll take care of you. Thanks.