195001 Resource 178438 178984 178982 1200593047444 1200598334249 Controlled Massive Volatility Remains in the Home Mortgage Market

Keep a finger on locking your Flagstaff loan and making a purchase now!

Bonds fell sharply yesterday and opened lower today, but after hearing Fed Chairman Ben Bernanke's testimony before the House Budget Committee, and the ugly Philadelphia Fed Manufacturing Index, pricing has rebounded.  Bernanke reinforced expectations of an aggressive interest rate cut.  We see in the Philly Fed reading that the manufacturing sector of the U.S. Economy continues to struggle.  Bernanke reiterated that the Fed was ready to take "substantive" action to blunt an economic slowdown, reinforcing expectations the central bank will cut interest rates by a full 50 bps at the meeting later this month.  Stocks are down again and that will continue to provide support to the bond market, helping home loan rates.  Housing starts were reported at 1,006,000, which was lower than expectations of 1,150,000.  This was the lowest number of Starts in about 16 years.  Building Permits were not much better, as they fell by 8% to an annual rate of 1,070,000, their lowest number in 12 years.  While many will be quick to point to this number as evidence of further demise within the housing market - I think it is actually a very good sign.  High inventory is a problem for the real estate market - so less new inventory coming on the market will be a positive for those who see the opportunity in the future.  As I have been saying, I think the time to buy is now.  We are still in a market that allows for negotiation and buyers are getting many consessions that have not been in this market in my memory.  If you are looking to purchase a Flagstaff home in the next 2 years, I believe that there is no better time than the present. 10 application/xml false Fed rates Federal Reserve news home loan rates home loans mortgage rates mortgages time to purchase Flagstaff home Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322; .NET CLR 2.0.50727) 127.0.0.1 127.0.0.1 aheitland 24.121.32.9 false true false false true 178975 false false true false false false true 178438 blog blogsite/BestFlagstaffHomes/web