| WOW! Bonds STEADY and the FNMA 4.5% bond is DOWN just 6 bps. 30 YEAR rates NATIONWIDE are in the 5% range. This is GREAT news for the home buyers looking to take advantage of the rates and tax credit. Remember: closing needs to happen by Nov. 30, 2009 to get the tax credit. Consumer Confidence reported Lower than expected. The number assigned was 53.1 vs. the 57 that was expected. This report is based on Surveys to over 5000 households to get a "street level" view of what is happening. This was the only real economic news today. US to issue some tougher rules for credit cards so we will have to see what that looks like. Case Shiller Home price index showing homes are now 13.2% "cheaper" than they were a year ago and we are seeing other signs that the market is leveling out. THIS is a golden opportunity for our home buyers. Remember the rates vs. prices comparison? As the price of homes goes down...but rates come up: the home payment and ULTIMATE COST can be the same. Example: $200,000 home loan at 5% note rate is $1074... If the rate rose to 6%: the payment would service only $179,000. SO: prices of homes could drop ANOTHER 10% as rates get back to "normal" and a person would be spending the same money on less loan. Remember the "bird in the hand" cliche? Have a great eve!
Chad
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