What the Financial Meltdown means for Real Estate
September 17, 2008 by Bob · Leave a Comment
Here is an explanation of what “Black Monday” and the almost 1 TRILLION (yes that 1000 million) dollars of tax payer money is going to effect the real estate market.
The Bazillion Dollar Question
… question that can’t easily be answered. If I could, I would be a Bazillionaire, own many private islands and wouldn’t be writing this article.
Short-term, it probably means lower interest rates as investors shift their assets out of some huge equity brokerages and into cash and/or more stable bonds. What are ‘more stable bonds’? Ironically: Mortgage Backed Securities, especially since the Treasury backed Fannie Mae and Freddie Mac.
However, lower rates do not mean faster, looser underwriting standards and it will probably take longer to close a loan due to the uptick in mortgage applications. With all the staff cuts in the industry, an uptick in business will bog down most mortgage lending operations. Patience is a virtue that is wisely practiced in today’s market.
Bob is a Denver native and involved in the real estate business for over 18 years. During this time, he has closed over 500 transactions, and has been the broker of record for 1000's more. Bob can be reached via email (bob@byownercolorado.net) or phone (303.770.1180.)