Rates

Well after a quite large run up in rates, leave it to the EU to bring them back down for us.

Once again, Germany is basically calling for Greece to fail and drop out of the EU.  This comes as Greece is telling everyone that they are not going to be able to make their payments on Debt and that they are not going to be able to follow their new budget plans.

Overall, I think the market has already baked in that Greece is now probably going to leave the EU and become a 3rd world country again.

But what I don't think is baked in is Spain, and being the 3rd largest economy in the EU, the EU will not be able to afford that loss, with out collapsing.

So rates climbed down off their 3.50% mark down to the 3.375% mark over the last 4 days, still not at the all time lowes, but slowly getting there.

The Federal Reserve also this week, made some indications that they are considering a QE 3 or Qualantive Easing 3.  This is where the Fed buys bonds to continue to force rates down.

And the good news is that they may actually purchase Mortgage Back Securities.  Which could have an affect (should) on interest rates, and drive them lower.  Don't know how much lower they can go, but we do know they can go down to 3.25%.

Shadow inventory.

Well for quite a few months I have been saying that I don't think that there is much shadow inventory out there.  My good Realtor Friend, William Kasten, has been saying I am crazy and that there is quite a bit of shadow inventory out there.  So I digress, saw this video today, and read  the Fannie Mae release.

OK, so maybe.... See video below.