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Thursday, December 25, 2008
Over the past several weeks we have taken a bird's eye view of the US economy. In this post I will be addressing what we will likely see happening in mortgage and real estate markets in 2009. Finally, I will point out the unique opportunities that are available in this type of environment.
Credit and Financial Markets
It seems the biggest story coming out of 2008 is the Fed's announcement in November to buy up $600 billion in unsecured debt and mortgage-backed securities from Fannie and Freddie. The push is an attempt by the Federal Reserve and the Treasury to steer toward lower mortgage rates - not just lower short-term rates.
The goal, whether it is a good idea or not, is to make it less expensive to get a mortgage. The idea is to lower debt costs to bring possible home-buyers or investors with credit to stabilize the market.
Furthermore, if home buyers jump into the real estate market, this will further stabilize home values which will help the banks' balance sheets. All of this bodes well for mortgage brokers and loan officers because the ultimate goal of the government is to get mortgage lenders to loosen credit and they have committed to do it. At some point during 2009 mortgage lending should begin to pick up. Expect a refinance boom when the mess clears up.
The Real Estate Markets
If housing permits continue to slow, it may be some time before the real estate market improves in the US. Keen an eye on a few things in Houston however. Some cities (including Houston) are still countering the global economic trend. However, even in Houston, permits are starting to slow which may lead to a retraction as we move into next year.
If unemployment figures creep up in Houston next year then that may be a sign that Houston may not escape the US and global economic turmoil with just a small hiccup.
Opportunities
The credit crisis has brought fear into markets whose economic fundamentals would not otherwise justify it. Therefore there may never be a better time to buy single family homes in Houston because the emotional fear does not match the fundamentals and prices have fallen below what they would otherwise warrant without the short-term, emotionally-driven fear.
With credit standards like they are right now, many investors (and most retail buyers) are out of the game because they are not able to get financing for single family homes. So now is a window of opportunity for smart investors with good credit to buy up undervalued investment properies in Houston.
Credit and Financial Markets
It seems the biggest story coming out of 2008 is the Fed's announcement in November to buy up $600 billion in unsecured debt and mortgage-backed securities from Fannie and Freddie. The push is an attempt by the Federal Reserve and the Treasury to steer toward lower mortgage rates - not just lower short-term rates.
The goal, whether it is a good idea or not, is to make it less expensive to get a mortgage. The idea is to lower debt costs to bring possible home-buyers or investors with credit to stabilize the market.
Furthermore, if home buyers jump into the real estate market, this will further stabilize home values which will help the banks' balance sheets. All of this bodes well for mortgage brokers and loan officers because the ultimate goal of the government is to get mortgage lenders to loosen credit and they have committed to do it. At some point during 2009 mortgage lending should begin to pick up. Expect a refinance boom when the mess clears up.
The Real Estate Markets
If housing permits continue to slow, it may be some time before the real estate market improves in the US. Keen an eye on a few things in Houston however. Some cities (including Houston) are still countering the global economic trend. However, even in Houston, permits are starting to slow which may lead to a retraction as we move into next year.
If unemployment figures creep up in Houston next year then that may be a sign that Houston may not escape the US and global economic turmoil with just a small hiccup.
Opportunities
The credit crisis has brought fear into markets whose economic fundamentals would not otherwise justify it. Therefore there may never be a better time to buy single family homes in Houston because the emotional fear does not match the fundamentals and prices have fallen below what they would otherwise warrant without the short-term, emotionally-driven fear.
With credit standards like they are right now, many investors (and most retail buyers) are out of the game because they are not able to get financing for single family homes. So now is a window of opportunity for smart investors with good credit to buy up undervalued investment properies in Houston.
About the Author:
Home Buddies is a Houston credit repair coach for real estate investors. Home Buddies develops and implements a customized strategy to restore credit and helps them overcome obstacles to financing properties and growing their portfolio.
posted by Credit Counseling at
10:31 AM
0 Comments
In today's world, it is common for most people to have at least one credit card. It allows for ease and speed, when shopping in a store or online. Merchants will more than likely accept many types of credit cards, allowing you to get what you need.
It does not matter where you happen to be shopping, most stores accept some sort of credit card. It makes for ease of the transactions to be processed. You do not have to worry about not having enough cash, because a credit card will go through as long as you have not breeched your monthly limit. This is a great way for the store to retain customer business and to encourage consumer spending.
You will find that online shopping is made much easier by using a credit card. You can rest assured knowing that it is very easy to use your credit card securely when making an online purchase. You do not have to worry about writing a check or purchasing a money order, your merchandise will ship more quickly when using a credit card.
When traveling throughout the world, a majority of locations will accept credit cards. This can give you peace of mind as a traveler, when you do not have to carry large amounts of cash that can be lost or stolen. It is a good idea when traveling to alert your credit card company, so that they are kept apprised of the apr rates and purchases you will be making in another state or country.
You can travel with confidence knowing that the credit card you carry will be accepted all over the world. You are protected and can purchase freely with confidence when you have a credit card. You will be able to make the purchases you need with no problems.
It does not matter where you happen to be shopping, most stores accept some sort of credit card. It makes for ease of the transactions to be processed. You do not have to worry about not having enough cash, because a credit card will go through as long as you have not breeched your monthly limit. This is a great way for the store to retain customer business and to encourage consumer spending.
You will find that online shopping is made much easier by using a credit card. You can rest assured knowing that it is very easy to use your credit card securely when making an online purchase. You do not have to worry about writing a check or purchasing a money order, your merchandise will ship more quickly when using a credit card.
When traveling throughout the world, a majority of locations will accept credit cards. This can give you peace of mind as a traveler, when you do not have to carry large amounts of cash that can be lost or stolen. It is a good idea when traveling to alert your credit card company, so that they are kept apprised of the apr rates and purchases you will be making in another state or country.
You can travel with confidence knowing that the credit card you carry will be accepted all over the world. You are protected and can purchase freely with confidence when you have a credit card. You will be able to make the purchases you need with no problems.
About the Author:
For a greater understanding on the subject of credit card apr rates. Visit us for lots of free information at http://www.everlife.com/low-apr-credit-cards.php.
posted by Credit Counseling at
7:28 AM
0 Comments
It is very unusual for a person to graduate from high school with a bad credit record. Most youths do not have any credit record at all, until they apply to college and register for financial aid. This is usually their first foray into the vast world of credit.
As more and more people are applying for college every day, it is not just the high school graduate population that are seeking student loans. Hundreds of thousands of people who seek career advancement know that the only way this will happen is through furthering their education.
Many adults that are re-entering college find themselves needing a student loan, but facing bad credit limits their options. They are forced to seek alternative sources for college funding, because of bad credit choices that have affected their credit rating.
To apply for a student loan means filling out forms and paperwork with the college financial aid office and sending the paperwork over to the US government for processing. There are many reasons a person could be going back to college, it could be for career advancement, job training for a new career or because their existing job has been eliminated or they have been indefinitely laid off.
In this case, many of them will seek out an alternative loan or what is called a bad credit student loan. These types of loans have strict guidelines and rules. There is usually a set of preliminary qualifications that must be met before they can event be guaranteed a loan.
The US government treats education quite seriously and you should never be led to believe you will not be eligible. You will need to make sure you use this money for school and school only and not for shopping or even to pay your credit card debt. There are protocols and rules governing bad credit student loan applications and these rules do not apply to other types of loans or to any debt relief topics.
Your bad credit may put you at risk in the eyes of the US government, so while they may grant you a loan you may not actually receive any money. In cases like this, the check goes directly from the government to the school.
This is done as a method of fraud protection and that the money is not used for anything other than school. This may seem like a harsh reality, but it is a protection system. Never believe that you cannot go back to school, the government has several programs that are designed to assist even the most financially strapped people still be able to pursue their dream of higher education.
As more and more people are applying for college every day, it is not just the high school graduate population that are seeking student loans. Hundreds of thousands of people who seek career advancement know that the only way this will happen is through furthering their education.
Many adults that are re-entering college find themselves needing a student loan, but facing bad credit limits their options. They are forced to seek alternative sources for college funding, because of bad credit choices that have affected their credit rating.
To apply for a student loan means filling out forms and paperwork with the college financial aid office and sending the paperwork over to the US government for processing. There are many reasons a person could be going back to college, it could be for career advancement, job training for a new career or because their existing job has been eliminated or they have been indefinitely laid off.
In this case, many of them will seek out an alternative loan or what is called a bad credit student loan. These types of loans have strict guidelines and rules. There is usually a set of preliminary qualifications that must be met before they can event be guaranteed a loan.
The US government treats education quite seriously and you should never be led to believe you will not be eligible. You will need to make sure you use this money for school and school only and not for shopping or even to pay your credit card debt. There are protocols and rules governing bad credit student loan applications and these rules do not apply to other types of loans or to any debt relief topics.
Your bad credit may put you at risk in the eyes of the US government, so while they may grant you a loan you may not actually receive any money. In cases like this, the check goes directly from the government to the school.
This is done as a method of fraud protection and that the money is not used for anything other than school. This may seem like a harsh reality, but it is a protection system. Never believe that you cannot go back to school, the government has several programs that are designed to assist even the most financially strapped people still be able to pursue their dream of higher education.
About the Author:
The time has come to gain a clearer understanding on the topic of credit card debt relief. Visit us at http://www.debtmastering.com/debt-free-in-three.html.
posted by Credit Counseling at
7:17 AM
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