Kemmer's call

While we have seen improvement in the economy and the stock market rally back up... there is still take of a large plethora of homes in foreclosure or banks are hold for resale.

The economy is driven by the consumer and if the lowering of rates caused the hugh run up in values, when it was over (2006)  the economy had to slow down..

Interest rates once again were lowered to allow for refinancing to lower rates and allow for those on adjustable rates to lock in before the rates head back up.

Currently the 30 year FNMA yield is floating around  100 giving us a rate of about 4.5%. While rates dipped a bit lower than this during the fall of 2010, I believe this is where we are going to sit for the next few months.

The apparent volume of home to sell will keep the prices stable if the banks feed the market there inventory and if rates remain stable we will get through this....

IF the banks dumped the load of foreclosures they are supposable holding  or rates jumped up the affordable index would once again drop. We are currently making great gains in the index (see link)

http://www.realtor.org/research/research/housinginx

This would be a good time to buy on a fixed rate... or certainly lock in to a fixed rate refinance.

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Kemmer Matteson