Rates

Well you can thank the Federal Reserve for putting a cap on the economy.  In their meeting this week, they indicated that although we have seen some really good number out of the economy in the past few months, it is not enough to bring confidence back to the market.

So they stated that The Federal Reseve will keep rates low until 2014!  Which is amazing, because they are basically pegging rates for 2 years.

This would be like Ford coming out and say, "buy our stock today at $7 per share, and we will guarantee you 2% increase over the next 2 years"  guaranteed.  What conservative investory wouldn't take that.

So that send stock sidways and the bond markets RALLIED!  HUGE RALLY.

One Bond trader indicated that he see Mortgage Rate to stay right where they are until the end of the year!  This would be great, because Spring in going to ROCK in the RE world and low rates are going to REALLY help.

Other than that, nothing really much happening out there in the lending world.  or other than 5 giant banks are going to have to cough up $25BILLION to help the housing industry.

Watch for more and more details on this and see the politics play out.  But what is proposed is that these lenders would have to reduce principal, prevent foreclosures and try to help people stay in their homes.  What a concept.

Don't forget to download the new IHA Preferred Risk Sharing Loan brochure to the right, GREAT program, 100% financing, NO MI.  GREAT deal.

And look at the videos to the right also, pretty good.