I am still in disbelief! Where are all the buyers for this market with 4% interest rates? I saw an FHA 5 year arm at 2.25% this week, good for 5 years and after that, the rate can only increase 1 percent a year and caps out at 5%! WHAT??? I remember buying my first home at 16 1/2 % and thought I was getting a deal because they had been up around 17%!
Buyers still seem extremely "on the fence" to purchase. I understand the concern of the economy, but at these rates it becomes obviously cheaper to own than to rent. Everyone needs to live somewhere. It still makes sense that if you have to pay to live somewhere, that you are actually BUYING your residence. What part of this equation has been lost?
I go crazy seeing all the DEALS that get past me, because being a realtor makes me SELF EMPLOYED. We all know that there isn't a lender out there right now willing to loan to anyone that is A) in the real estate and or lender business or B) self employed. Its like the double whammy!
That, in turn has me wondering WHAT is my credit score is worth any more and why I still try so hard to make sure that is stays in the high 700"s. It doesn't allow me to get a loan, since know one will lend to me. It is a very frustrating thing.
I really would like to be buying up some investment properties as the rental market is doing nothing but escalating. With millions of homeowners losing their properties to foreclosure, they all have to have someplace to live. I see deals everyday that would produce an instant POSITIVE cash flow by some several hundred dollars. I just wish we could all get in the game. It would help move through some of this lagging inventory (mostly condos, good rentals) out of the market.
I get that the guidelines are extremely tight right now for lending , but it feels like all of us that have tried to do the RIGHT thing with our mortgages and credit are being penalized for all the others that did the WRONG thing.
Its not an easy solution. I am trying to stay hopeful that somewhere, someone in the government upper levels are working on getting this turned around. I just seem to be losing faith that that will happen anytime soon. Rates will go back up and we will still be trying to get through a huge amount of inventory in the real estate market.
Let the self employed that have proven themselves with great credit over a long period of time, makes their mortgages on time and take their credit seriously have some opportunity in the real estate market. We promise to do the RIGHT thing if just given the opportunity.
No comments:
Post a Comment