TravelingGal
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So...what do you think of all these rate cuts?
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Mara
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I don''t think that it will help even if they do because people are getting too freaked out about what might be coming. And the market especially in CA is just stagnant.
For us though, it might be a good time to refi if they do drop another 1/2 pt. We are trying to wait for the best rate as we have a little bit of time (another year) before our loan goes adjustable. No point in paying more per month than we need to!
For us though, it might be a good time to refi if they do drop another 1/2 pt. We are trying to wait for the best rate as we have a little bit of time (another year) before our loan goes adjustable. No point in paying more per month than we need to!
TravelingGal
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LOL, thanks Sparkster...
Mara, I think you may be right. In California, not sure how much it''s going to help. I can tell you that as a potential buyer, it just makes me think the worst is yet to come and sit on the sidelines for a just a bit longer.
There''s no reward for being a responsible these days, except for feeling good at about yourself it seems.
Mara, I think you may be right. In California, not sure how much it''s going to help. I can tell you that as a potential buyer, it just makes me think the worst is yet to come and sit on the sidelines for a just a bit longer.
There''s no reward for being a responsible these days, except for feeling good at about yourself it seems.
Keepingthefaith21
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Since the sub-prime lending trend has fallen, I doubt the drops in rates will do much for the market. It may prompt those who are current mortgage holders to re-fi and those who do have ARM mortgages to consider seeking a new mortgage with a locked rate but I doubt it will do much to the stagnant market.
I used to work in a law firm that relied heavily on real estate closings to keep the bank account looking nice. I spoke with one of the attorney’s yesterday and she told me that because the market has been so bad, they had to give up their office space and enter into space sharing with another firm that is also having financial difficulties due to the market dip.
I think it’s going to be a few years before we’ll see any sort of major turn around, sadly. In the meantime I think about all the properties that have been foreclosed on that are being vandalized and neglected...it makes me wonder how many homes will begin to fall apart causing the value of other homes in the neighborhoods to decline.
You are right TGal...there is no reward for being responsible. It seems they are too busy bailing out people who have no concept of making a responsible financial decision to spend any time rewarding those who work their bums off for what they have.
I used to work in a law firm that relied heavily on real estate closings to keep the bank account looking nice. I spoke with one of the attorney’s yesterday and she told me that because the market has been so bad, they had to give up their office space and enter into space sharing with another firm that is also having financial difficulties due to the market dip.
I think it’s going to be a few years before we’ll see any sort of major turn around, sadly. In the meantime I think about all the properties that have been foreclosed on that are being vandalized and neglected...it makes me wonder how many homes will begin to fall apart causing the value of other homes in the neighborhoods to decline.
You are right TGal...there is no reward for being responsible. It seems they are too busy bailing out people who have no concept of making a responsible financial decision to spend any time rewarding those who work their bums off for what they have.
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lumpkin
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I don''t think it will help much here in the KC area. The market is very slow. Most of the people who have a house already aren''t moving to a higher bracket neighborhood. There are not many new home subdivisions being built and resale houses are lingering on the market a lot longer. By and large the market is pretty dead. We had a big boom for about 15 years and it''s over. It''s probably been over for about 2 years. Unless the entire economy picks up, the lower interest rates are not going to get people to buy houses. It *might* get them to buy cars. Seems like the car dealerships are pretty desperate and are making great deals.
Hera
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I don''t think it will do much for the stagnant housing market either. I''m in California and I think buyers are still going to be hanging out on the sidelines waiting for prices to decline. With the ARMs resetting, foreclosures are only going to rise and eventually the prices will need to decline further as I believe that there will be more houses than people who are qualified to purchase (especially in the entry level home like I am looking at). I also tend to believe that houses are still being kept a little high because the sellers are waiting for people to start buying in Spring. When they see that noone is buying, I think they will further drop the prices.
I''m looking at purchasing around summertime and I am going to be extra picky when buying because the ball does appear to be in my court. If I had patience though, I would actually be tempted to wait until 2009 to buy because the ARMs are not finished resetting yet and I don''t believe that the proposed bailout plan will really help as many simply will not qualify. Who actually knows when the market will bottom out though, I figure I will just buy when I find something I like, can afford and has potential. I want to put my interior design degree to use. Bring on the shag carpeting
I''m looking at purchasing around summertime and I am going to be extra picky when buying because the ball does appear to be in my court. If I had patience though, I would actually be tempted to wait until 2009 to buy because the ARMs are not finished resetting yet and I don''t believe that the proposed bailout plan will really help as many simply will not qualify. Who actually knows when the market will bottom out though, I figure I will just buy when I find something I like, can afford and has potential. I want to put my interior design degree to use. Bring on the shag carpeting
Beacon
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TravelingGal
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We are looking at winter 2008 into spring 2009. We''ll hold off even more we can''t reasonably afford something. I''m OK being a renter and may just find a house to rent. California prices are just ridiculous...or one of my fave PS words: redonkulous.Date: 1/10/2008 6:28:50 PM
Author: heraanderson
I don''t think it will do much for the stagnant housing market either. I''m in California and I think buyers are still going to be hanging out on the sidelines waiting for prices to decline. With the ARMs resetting, foreclosures are only going to rise and eventually the prices will need to decline further as I believe that there will be more houses than people who are qualified to purchase (especially in the entry level home like I am looking at). I also tend to believe that houses are still being kept a little high because the sellers are waiting for people to start buying in Spring. When they see that noone is buying, I think they will further drop the prices.
I''m looking at purchasing around summertime and I am going to be extra picky when buying because the ball does appear to be in my court. If I had patience though, I would actually be tempted to wait until 2009 to buy because the ARMs are not finished resetting yet and I don''t believe that the proposed bailout plan will really help as many simply will not qualify. Who actually knows when the market will bottom out though, I figure I will just buy when I find something I like, can afford and has potential. I want to put my interior design degree to use. Bring on the shag carpeting
strmrdr
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strmrdr
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Mara
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beacon i seriously hope we don''t relieve 1990 because that was horrible for our area. i don''t think things would get that bad (knock on wood) because the job market here is in the middle of an upswing again, so people from out of state do need places to live and i believe that our rental market here is up. i know a lot of potential buyers who are ''waiting'' though, so we''ll see how it shakes out.
we are tempted to ''upgrade'' and move into a house from our townhouse within this year instead of refinancing because of how the prices are right now...we could get a lot more bang for our buck in moving up...but we really like our townhouse and we also think why gamble when who knows what will happen this year to the market. we could get into something bigger and then in 6 months it could drop 40k. so it seems safer to hold what we have and see how things shake out in 08.
also we have had a fair amount of foreclosures in this area and the banks are selling them back to the public for what appears to be market value. so it doesn''t even seem like buyers are getting that much of a discount on the foreclosures. recently a house was foreclosed in the area we walk in, and the bank sold it for 899 which seemed high for us for what it was (kind of small inside) i would have thought something like that would be a ''bargain'' at more like 800.
we are tempted to ''upgrade'' and move into a house from our townhouse within this year instead of refinancing because of how the prices are right now...we could get a lot more bang for our buck in moving up...but we really like our townhouse and we also think why gamble when who knows what will happen this year to the market. we could get into something bigger and then in 6 months it could drop 40k. so it seems safer to hold what we have and see how things shake out in 08.
also we have had a fair amount of foreclosures in this area and the banks are selling them back to the public for what appears to be market value. so it doesn''t even seem like buyers are getting that much of a discount on the foreclosures. recently a house was foreclosed in the area we walk in, and the bank sold it for 899 which seemed high for us for what it was (kind of small inside) i would have thought something like that would be a ''bargain'' at more like 800.
Beacon
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Skippy123
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Federal Reserve Cuts Interest Rate Three-Quarters of a Point Today to Try to Head Off Recession
http://biz.yahoo.com/ap/080122/fed_interest_rates.html
http://biz.yahoo.com/ap/080122/fed_interest_rates.html
TravelingGal
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Ellen
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Ellen
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Oh look, I didn''t even need to guess.
http://news.yahoo.com/s/ap/20080122/ap_on_bi_st_ma_re/wall_street
http://news.yahoo.com/s/ap/20080122/ap_on_bi_st_ma_re/wall_street
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Have I posted this before? My husband and I saw this when Mr. Bernanke was first appointed Chairman of the Federal Reserve Board, so I may have.
Columbia Business School Video
Please note that the "CBS" referred to in the video is, "Columbia Business School". Their dean, Glenn Hubbard, had been a contender for Chairman of the Federal Reserve Board when Alan Greenspan announced that he was retiring, only Ben Bernanke got the job instead.
(By the way, I know less than nothing about finance and I have no opinion about rate cuts, but my husband does.)
Deb
Columbia Business School Video
Please note that the "CBS" referred to in the video is, "Columbia Business School". Their dean, Glenn Hubbard, had been a contender for Chairman of the Federal Reserve Board when Alan Greenspan announced that he was retiring, only Ben Bernanke got the job instead.
(By the way, I know less than nothing about finance and I have no opinion about rate cuts, but my husband does.)
Deb
Ellen
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movie zombie
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Where is Dancingfire when you need him?
It''s like since the 80''s Americans are acting like the normal rules of finance (don''t spend more than you earn, keep a budget, save for retirement) didn''t apply anymore. Same thing with our Government, spending more than we have, going from a surplus to a deficit, as if that would''nt have consequences down the line.
Recessions are a normal part of the cycle and people get through them if they have an emergency savings and cut down on spending to get through lean times. But people haven''t saved, and so many young people have never seen a real downturn in economy to shock them into fiscal sense.
Unfortunately the way our markets and government have tried to circumvent any downturns through various fixes, inflating the markets, cutting rates (often in time with elections) has in my opinion forstalled it but made the whole thing worse so it will affect more people for a longer period of time.
The intervention from the government should have been not letting banks allow such loose lending practices, almost sure to get people in trouble when the economy inevitably had a downturn. The rest right now is bandaids.
It''s like since the 80''s Americans are acting like the normal rules of finance (don''t spend more than you earn, keep a budget, save for retirement) didn''t apply anymore. Same thing with our Government, spending more than we have, going from a surplus to a deficit, as if that would''nt have consequences down the line.
Recessions are a normal part of the cycle and people get through them if they have an emergency savings and cut down on spending to get through lean times. But people haven''t saved, and so many young people have never seen a real downturn in economy to shock them into fiscal sense.
Unfortunately the way our markets and government have tried to circumvent any downturns through various fixes, inflating the markets, cutting rates (often in time with elections) has in my opinion forstalled it but made the whole thing worse so it will affect more people for a longer period of time.
The intervention from the government should have been not letting banks allow such loose lending practices, almost sure to get people in trouble when the economy inevitably had a downturn. The rest right now is bandaids.
ChargerGrrl
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Ellen
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Thank you. Exactly.Date: 1/23/2008 1:01:10 PM
Author: part gypsy
Where is Dancingfire when you need him?
It''s like since the 80''s Americans are acting like the normal rules of finance (don''t spend more than you earn, keep a budget, save for retirement) didn''t apply anymore. Same thing with our Government, spending more than we have, going from a surplus to a deficit, as if that would''nt have consequences down the line.
Recessions are a normal part of the cycle and people get through them if they have an emergency savings and cut down on spending to get through lean times. But people haven''t saved, and so many young people have never seen a real downturn in economy to shock them into fiscal sense.
Unfortunately the way our markets and government have tried to circumvent any downturns through various fixes, inflating the markets, cutting rates (often in time with elections) has in my opinion forstalled it but made the whole thing worse so it will affect more people for a longer period of time.
The intervention from the government should have been not letting banks allow such loose lending practices, almost sure to get people in trouble when the economy inevitably had a downturn. The rest right now is bandaids.
And that''s so funny. I just used the bandaid analogy to my hubby the other day.
~*Alexis*~
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Date: 1/23/2008 1:07:16 PM
Author: Ellen
Thank you. Exactly.Date: 1/23/2008 1:01:10 PM
Author: part gypsy
Where is Dancingfire when you need him?
It''s like since the 80''s Americans are acting like the normal rules of finance (don''t spend more than you earn, keep a budget, save for retirement) didn''t apply anymore. Same thing with our Government, spending more than we have, going from a surplus to a deficit, as if that would''nt have consequences down the line.
Recessions are a normal part of the cycle and people get through them if they have an emergency savings and cut down on spending to get through lean times. But people haven''t saved, and so many young people have never seen a real downturn in economy to shock them into fiscal sense.
Unfortunately the way our markets and government have tried to circumvent any downturns through various fixes, inflating the markets, cutting rates (often in time with elections) has in my opinion forstalled it but made the whole thing worse so it will affect more people for a longer period of time.
The intervention from the government should have been not letting banks allow such loose lending practices, almost sure to get people in trouble when the economy inevitably had a downturn. The rest right now is bandaids.
And that''s so funny. I just used the bandaid analogy to my hubby the other day.
This applies to everyone but the US Government!
Maybe SOMEDAY we can stop spending $20,000 on a toilet seat!!!
movie zombie
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strmrdr
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coatimundi_org
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Skippy123
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Well I guess they are thinking up all kinds of things to stimulate the economy but where are they (or better yet, we) getting the money to do this?!?!
http://news.yahoo.com/s/ap/20080124/ap_on_go_co/economy_stimulus
http://news.yahoo.com/s/ap/20080124/ap_on_go_co/economy_stimulus
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