Friday, December 12, 2008

Americans Know A Bargain When They See One

Here is an interesting post from my in house mortgage consultant.

THE GOOD NEWS Strange as it may seem, the one segment of the economy that gives us cheer is housing. Housing has been the weakest sector of the economy for some time. However, mortgage applications rose 112% last week --the biggest percentage gain in history. Refinancing also leaped upwardby some 203%. With some trepidation, we are inclined to say that the worst may be over for housing.

Moreover, the stock market seems to agree with us. With stocks likeMasco (MAS), a Growth Portfolio pick leveraged to the home-building industry, leading the market higher, housing seems to be emerging from the doldrums. We also note that October's figures showed houses to be more affordable than any time in the last 20 years. Today, with the Federal Reserve buying up mortgage-backed agency securities and forcing mortgage rates lower, we expect affordability has reached a record high. Housing prices have also come down a huge amount. Americans know a bargain when they see one, and will surely increase their buying thanks to record high liquidity. Housing was a significant catalyst for the downturn in the stock market, and we believe a turnaround in housing is a needed catalyst for an upturn in the economy. We are not about to stand on a soapbox and shout that the worst is over. However, the improved figures from the housing sector are certainly a positive sign.

Christine Dawson Mortgage Consultant,
Retail Mortgage Sales Wells Fargo Home Mortgage
M6575-0112350A Merrick Rd
Bellmore, NY 11710
(516) 409-2880 Tel
516-445-0521 Cell
1-866-892-7154 Fax
There are 13 AAA rated companies in the world, 9 are located in the US.Only one is a US bank...Wells Fargo!

**posted with her permission**

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