I wanted to share with you an email I just received from Cody McCollom of Grandmark Mortgage in Edmond.
As most people know by now, one of the biggest hurdles facing the housing market right now if the inability of many to qualify for a mortgage, due to the ‘freeze’ in the credit market. It looks like there may be relief in sight, as I said there would be eventually. If the mortgage companies aren’t lending money, they aren’t making money, so they’re bound to loosen up a little bit on the guidelines, sooner or later. This may be some light at then end of the proverbial tunnel:
News this morning could be a big boost for the mortgage market and make for more home sales. They have finally pulled their heads out and realized that real estate is not going to heat up until they get the mortgage market up and running again from a credit availability standpoint.
The Fed announced a new bailout plan this morning to buy up hundreds of billions of dollars of loans and mortgage-backed securities from Fannie, Freddie, and the Federal Home Loan banks. This could cause a drop in rates but, more importantly, should relax the credit freeze a bit and allow more people to qualify for mortgages than have been able to lately.
Let’s keep our fingers crossed, as the health of the mortgage market has a dramatic, direct impact on our local and national economy.
[where: Edmond, OK]
About Ryan Hukill
With the Treasury Secretary on his spending spree he surely isn’t trying to get a good return on the tax payers’ investment. The bailout was to buy up bad mortgage debt but it never did. What is the purpose of the fund? Paulson’s has warrants on many banks and they average 1 – 3 percent when enacted. Yet the cash investment is about 20 percent of the market cap. Maybe the next Treasury Secretary will be less erratic.
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