READY…SET…HIKE! Fed Day came and went without much fanfare. Chairman Greenspan and his inflation-fighting friends at the Fed decided to hike up the Fed Funds Rate by another .25%, although the decision was not unanimous. More importantly, the commentary was fairly tame with no shockers for the market to absorb. Greenspan said that although the aftermath of Hurricane Katrina will be highly costly and inflationary, the long-term look at the economy shows that inflation is still “contained”. Sounds like you can bank on a few more hikes before Uncle Al turns over the keys to his successor…likely to be Fed Governor Ben Bernanke.
Although Mortgage Bonds and home loan rates had a bit of improvement early in the week, Friday saw them worsen right back to where they started as China announced they would allow further floating of their currency, the Yuan, against the US Dollar. Why? A few months back, China announced that they would no longer peg the Yuan to the US Dollar, and would instead allow it to float within a “limited range”. The breaking news that China will allow the Yuan to float even further from the Dollar means that China does not have to purchase as many US denominated securities – like Bonds – to keep the US Dollar at higher levels, which would in turn keep the Chinese Yuan stronger. Less buying is always bad news for prices…so Bonds and home loan rates took a turn for the worse on the news.
For the best in San Diego real estate websites, please visit: San Diego real estate - San Diego downtown condos - Costal Del Mar La Jolla real estate - San Diego for sale by owner. Also, for any legal assistance, visit San Diego attorneys Directory. Another new San Diego site is all about web site awards. Add a little prestige & additional creditability to your web site ( if it qualifies) with one of these excellent web awards. Their newest is a very cool blog award. Visit the site at: www.web-site-award-winning.com
Monday, September 26, 2005
Friday, September 23, 2005
EZ Money
A Federal Reserve Survey found that non-traditional mortgages now account for “more than a quarter of new business at a third of the nation's largest home lenders.” Picture the economy and the housing market in two years. If you think it will be as good or better than we’ve seen in the last 3 years, you have taken the term “optimist” to a new level. Be sure to visit our free San Diego for sale by owner real estate site. Post text and photos for 90 days for Free!
Thursday, September 22, 2005
San Diego Real Estate - The run is OVER!
California Association of Realtors predicts ....
The rate of home price appreciation will moderate next year following four years of steep increases, while sales in 2006 will decline slightly from this year's record pace, according to C.A.R.'s "2006 Housing Market Forecast" released today. The forecast was presented during the C.A.R. Centennial REALTOR® EXPO, running from Sept. 20 - 22 at the San Diego Convention Center.The median home price in California will increase 10 percent to $575,500 in 2006 compared with a projected median of $523,150 this year, while sales for 2006 are projected to reach 630,610 units, falling 2 percent compared with 2005. The double-digit gain in the median price of a home, which California has experienced for most of the past five years, will again be fueled by the continuing shortage of housing across much of the state, according to C.A.R. economists. California typically gains nearly 250,000 new households, yet only will build about 200,000 new housing units this year, creating a shortfall of about 50,000 units."The economic fundamentals at both the state and national level continue to support a strong housing market in the Golden State for the foreseeable future," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "However, we also expect that the wave of new loan products that have flooded the market over the past several years have injected a higher level of risk into the market, while affordability barriers to homeownership will continue to push residents inland and even out of state."
The above is the official industry line. My take is California real estate is on the verge of a 20 to 40% DROP IN VALUE! For the best in San Diego real estate websites, please visit: San Diego real estate - San Diego downtown condos - Costal Del Mar La Jolla real estate - San Diego for sale by owner. Also, for any legal assistance, visit San Diego attorneys Directory. Another new San Diego site is all about web site awards. Add a little prestige & additional creditability to your web site ( if it qualifies) with one of these excellent web awards. Their newest is a very cool blog award. Visit the site at: www.web-site-award-winning.com
The rate of home price appreciation will moderate next year following four years of steep increases, while sales in 2006 will decline slightly from this year's record pace, according to C.A.R.'s "2006 Housing Market Forecast" released today. The forecast was presented during the C.A.R. Centennial REALTOR® EXPO, running from Sept. 20 - 22 at the San Diego Convention Center.The median home price in California will increase 10 percent to $575,500 in 2006 compared with a projected median of $523,150 this year, while sales for 2006 are projected to reach 630,610 units, falling 2 percent compared with 2005. The double-digit gain in the median price of a home, which California has experienced for most of the past five years, will again be fueled by the continuing shortage of housing across much of the state, according to C.A.R. economists. California typically gains nearly 250,000 new households, yet only will build about 200,000 new housing units this year, creating a shortfall of about 50,000 units."The economic fundamentals at both the state and national level continue to support a strong housing market in the Golden State for the foreseeable future," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "However, we also expect that the wave of new loan products that have flooded the market over the past several years have injected a higher level of risk into the market, while affordability barriers to homeownership will continue to push residents inland and even out of state."
The above is the official industry line. My take is California real estate is on the verge of a 20 to 40% DROP IN VALUE! For the best in San Diego real estate websites, please visit: San Diego real estate - San Diego downtown condos - Costal Del Mar La Jolla real estate - San Diego for sale by owner. Also, for any legal assistance, visit San Diego attorneys Directory. Another new San Diego site is all about web site awards. Add a little prestige & additional creditability to your web site ( if it qualifies) with one of these excellent web awards. Their newest is a very cool blog award. Visit the site at: www.web-site-award-winning.com
Tuesday, September 20, 2005
EZ Money - Hard Times Sure to Follow
A Federal Reserve Survey found that non-traditional mortgages now account for “more than a quarter of new business at a third of the nation's largest home lenders.” Picture the economy and the housing market in two years. If you think it will be as good or better than we’ve seen in the last 3 years, you have taken the term “optimist” to a new level.
Be sure to visit our free San Diego for sale by owner real estate site. Post text and photos for 90 days for Free!
Be sure to visit our free San Diego for sale by owner real estate site. Post text and photos for 90 days for Free!
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