Black Monday
Black Monday: The end of the financial world as we know it….
If you watch any of the financial TV shows one would think that we are on the verge of an epic economic implosion… Well, the world didn’t end, though you wouldn’t have known it by watching TV or reading the paper. Pessimistic, drama laced hyperbole sells newspapers and drives up viewership ratings. It also confuses people to what the hell is really going on.
Being that AgentGenius is a real estate professional centric community, the natural question is ‘What does this mean to the real estate and mortgage markets?‘
The Bazillion Dollar Question
Long term, that’s a tough question that can’t easily be answered. If I could, I would be a Bazillionaire, own many private islands and wouldn’t be writing this article.
Short-term, it probably means lower interest rates as investors shift their assets out of some huge equity brokerages and into cash and/or more stable bonds. What are ‘more stable bonds’? Ironically: Mortgage Backed Securities, especially since the Treasury backed Fannie Mae and Freddie Mac.
However, lower rates do not mean faster, looser underwriting standards and it will probably take longer to close a loan due to the uptick in mortgage applications. With all the staff cuts in the industry, an uptick in business will bog down most mortgage lending operations. Patience is a virtue that is wisely practiced in today’s market.
Back In The Day
Mortgage qualification has moved to ‘back in the day’, where borrowers
