Big Trouble for the Economy in 2007?

There is a lot of different ideas about the 2007 economy floating around. From the Mortgage side we feel it will be a very difficult year. The housing market has the ability to drag the economy down like a lead weight around its neck. We keep hearing we may be at the bottom but the truth is there are BIG layoffs coming in the next few months in the housing Industry. Many of the Builders are finishing up the OLD projects and there is not much on the drawing board. This can have a large economic domino effect and will filter down into the other sectors of our economy. The other problem is there are starting to be problems in the banking community as some of the risky loans made are having serious problems. The mortgage business will now face the problems head on because of the "easy" mortgages they have made for years. We see Large problems on the horizon ahead so be careful what you buy and what rate you get. Go with a 30 Year fixed and stay away from the Arms and the trash loans being offered out there. Do not put the Lead weight on your own head.

Are Low Rates Here To Stay?

We have had low mortgage rates for a very long time. The big Question is: How long will they stay low? It certainly appears as if the Feds are not going to raise rates as of now. Always remember though things can and do change in a wink of a eye. Overnight the conditions can change that paint a very different picture to the economy. Oil prices are not fixed by us. The dollar is not fixed by us. The are a lot of things that we have no control over that can alter the economic picture in a hurry. Do not relax and think that they are here to stay. If you are buying a home at this time you are in a very good position with housing prices and inventory in many places around the country. The coming new year could be a very different story. Enjoy the ride for now! If you are looking for a home to live in look with knowledge for the right price and the right rates and fees. The first thing is that you need to have good credit scores. You can check your credit scores online at My Fico.Com or Equifax. Next, you need to have some savings for a 5% or more down payment. Do you have a good way to save for a down payment? We highly recommend Emigrant Direct. They pay one of the highest rates in the country on their savings account, with no minimums, no fees.

Do Not Say That Bad Word "Recession" Too Loudly.

As Property Taxes go up the owner of the shopping mall passes it on to the store owners. When the store owners get it they then raise their prices on the products or services they sell to the consumer. The consumer then ask his boss for a raise. The boss then passes the raise hike to the cost of the goods he is selling. The consumer then needs another rate hike. In the meantime the boss just got a 20% hike in his medical premium that he has to pass on as higher prices in the goods or services he sells. Now you need another raise! This is the swirl of economy out of control. The meaning of the word RECESSION is "A temporary decline in business activity, typically classified as two consecutive quarters of falling Gross Domestic Product." There is a great deal of confusion in economy today. Some areas still appear to be booming while other areas have the downside happening to their economy. Which way will the winds of the economy turn? Time will tell. Many Home Buyers are having a field day because of the flood of homes on the market with declining prices still going on. DO NOT BUY MORE HOME THAN YOU CAN AFFORD even if you think will be making a lot more income in the future. Stay Lean and you will not feel the pressure of rising home ownership costs beating on your doorsteps. Home ownership then can be enjoyable to you.

There is a Loud Rumble in the Banking Arena

The is a lot of fear starting to raise its ugly head as Banks and other Lending Institutions start to see more late payments and a raise in foreclosures. This is not a local concern but a national and even a international concern. See what the worlds third largest Bank had to say about the problem. As we have posted before a lot of crazy loans have been made that went way beyond the normal guidelines as in past years. Many borrowers bought a home way above their means and now as expenses go up they cannot afford the extra cost. Do not get caught in the TRAP of a home. Buy what you can afford without blowing your budget. If you do you will ENJOY being a home owner rather than than it becoming a huge stone around your neck. Gain the knowledge you need to make a wise decision. If you are looking for a home to live in look with knowledge for the right price and the right rates and fees. The first thing is that you need to have good credit scores. You can check your credit scores online at My Fico.Com or Equifax.Next, you need to have some savings for a 5% or more down payment. Do you have a good way to save for a down payment? We highly recommend Emigrant Direct. They pay one of the highest rates in the country on their savings account, with no minimums, no fees.