Wow, 2008 is here. It’s hard to believe 8 months have passed since the market first showed signs of unraveling…and we’re still asking when it’s all going to end. These two looming questions from 2007 are sticking with us like a bad hangover:
What’s going to happen with the housing/credit markets, and how will it affect the economy this year?
On the 2008 economic outlook …
Of course, everyone has an opinion about this (including us), but the general consensus seems to be that it’s not going to be a banner year for the US economy. Until the housing market is “un-slumped” and credit market “un-crunched,” our economy is going to be stumbling a bit.
On what the feds are doing to try and stabilize the credit markets…will it help?
“The national loan modification and rate freeze will not stabilize the market in any significant way, as the real issue is the availability of money to create new loans. Right now, that’s at a minimum nationwide. If lenders’ mortgage loans are “non-performing” (meaning, in default or close to being in default) they tie up capital that would otherwise be used to fund new mortgages.” On the overall market…should buyers make their move in 2008?
“It’s become a buyer’s market and sellers are anxious to negotiate. The New Year presents opportunities that have not been seen for years. Lenders that are not affected by the current mortgage slowdown will work with qualified borrowers to get them financed and complete their home purchase. If you’re thinking about purchasing a home, this is a good year to do it, because the market is predicted to begin moving again at the end of the year and into the next, but for now, buyers are in the driver’s seat.”
If you have any questions or would like to speak with us directly please feel free to contact us at 1-888-210-6134!
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