A Question I Often Ask Myself…..
by Tom on October 6, 2008
in Market Musings, house prices
And yes, I do occasionally talk to myself, but it’s usually just in my head, not out loud…..
So, any time when things seem to be “in turmoil,” I try to ask myself a question. That question is this:
“What has changed in the mortgage and real estate market in the last 2 weeks?”
The answer? Basically nothing.
Yep, you heard me right. Nothing. Zip. Nada.
Think about it, are there a lot of things going on in the credit markets? Yep. Are there a a lot of things going on in the stock market? Uh, yeah there are. Is the banking world in a “bit” of turmoil? Yep.
Is it harder to get a mortgage now than it was a week ago? Nope. Actually, Fannie and Freddie changed their delivery fees and essentially made mortgages a little cheaper.
So, a couple of thoughts:
1. If you have good credit, a downpayment, and verifiable income, you have and will always be able to get a reasonable mortgage.
2. The downward pressure on the economy and on consumer confidence based on what’s happening in the stock market will probably have some softening effect on housing prices. At least until we get to the point that people feel there are “bargains” out there.
3. It now, more than ever, is important to do the research you need to and make as wise and unemotional decisions and to work with professionals.
So have things changed in the last week? Yes, a lot of things have. Things that might affect your retirement account and other investments. Have things changed that affect your real estate plans?
Nope, not really.
Let me know if I can help.
