Mortgage and Real Estate Blog

There are a lot of people who are up in arms talking about the record breaking profit announced by Wells Fargo that comes down to discussion about the economy, bailouts and other factors. Some of the discussion of the banks, however, tends to take a look at mortgage rates and real estate news - and right now, it seems as though people are starting to thik that there’s some hope to be found there.

While it’s true that new home construction has been down, there are some economists who have made the choice to focus on the positives: with mortgage rates as low as they are, many homeowners are refinancing. For the overall housing market, they argue, these refinancings are going to lead to a reduction in foreclosures - which will ultimately result in fewer bank owned properties and a rise in home prices (because the banks won’t be looking to get rid of toxic assets).

For homeowners, this bit of real estate news is welcomed because it implies that their homes will retain value; for buyers, the low interest rate associated with mortgage rates combined with a leveling off of available homes and home prices can be seen as something of a call to action.

In other words, for those who are looking at real estate news from one week to the next, this particular story is of interest. Of course, just because the news is positive today doesn’t mean that there won’t still be hiccups and gaps where situations don’t match the story - but it’s definitely something to think about.

This entry was posted on Friday, April 10th, 2009 at 1:04 pm and is filed under Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.