Comments on: Worst Ever Housing Market in California: The Numbers Revealed. http://www.mybudget360.com/worst-ever-housing-market-in-california-the-numbers-revealed/ Investing ideas for preserving wealth in a fluctuating market. Mon, 08 Sep 2008 13:45:28 +0000 http://wordpress.org/?v=2.3.2 By: mybudget360 http://www.mybudget360.com/worst-ever-housing-market-in-california-the-numbers-revealed/#comment-164 mybudget360 Sat, 29 Mar 2008 21:19:01 +0000 http://www.mybudget360.com/worst-ever-housing-market-in-california-the-numbers-revealed/#comment-164 Josh: The misinformation unfortunately was done by the Fed. For example, why did they discuss that they needed to cut rates? To help the housing market? How? By creating further liquidity. If you believe their number one fear is inflation, you have something coming to you. They have an effective mechanism to counter inflation and Paul Volcker showed us via raising rates in the 80s. They care not of a falling dollar. The reason rates have gone up is because credit risk has jumped. All the Fed is doing with lower rates is helping banks but those on main street see very little impact of this. Hence the comparison. It does matter since they are using the housing decline and credit crunch as impetus of cutting rates further. The point of showing the above is that they are implying that cutting rates is somehow going to help homeowners when as you have mentioned, it has done the opposite. But it has helped Wall Street and banks live another day. Inflation fears? Why not stop on over at the www.bls.gov site and according to them, we have 0 percent inflation going on. What they truly fear is deflation. Josh:

The misinformation unfortunately was done by the Fed. For example, why did they discuss that they needed to cut rates? To help the housing market? How? By creating further liquidity. If you believe their number one fear is inflation, you have something coming to you. They have an effective mechanism to counter inflation and Paul Volcker showed us via raising rates in the 80s.

They care not of a falling dollar. The reason rates have gone up is because credit risk has jumped. All the Fed is doing with lower rates is helping banks but those on main street see very little impact of this. Hence the comparison. It does matter since they are using the housing decline and credit crunch as impetus of cutting rates further. The point of showing the above is that they are implying that cutting rates is somehow going to help homeowners when as you have mentioned, it has done the opposite. But it has helped Wall Street and banks live another day.

Inflation fears? Why not stop on over at the http://www.bls.gov site and according to them, we have 0 percent inflation going on. What they truly fear is deflation.

]]> By: Brent http://www.mybudget360.com/worst-ever-housing-market-in-california-the-numbers-revealed/#comment-163 Brent Sat, 29 Mar 2008 15:07:16 +0000 http://www.mybudget360.com/worst-ever-housing-market-in-california-the-numbers-revealed/#comment-163 thank you Josh!!!!! I get so sick and tired of ill informed people continuing to spew wrong information. LET ALL REPEAT IT AGAIN THE FED DOES NOT LOWER OR CUT OR HAVE DIRECT 1 TO 1 RELATION TO LONG TERM MORTGAGE RATES!!!!!!!!!!!!!!!!!!! Look folks the rates are not going to get much lower even if the Fed cuts to zero. Lenders are trying to get cash reserves built back up,they are making more on their SRP than before. What the common public does not understand is they really dont want a 30 yr fixed at 4%, that means your 401k or other investments are in the tank. God help us all! thank you Josh!!!!! I get so sick and tired of ill informed people continuing to spew wrong information. LET ALL REPEAT IT AGAIN
THE FED DOES NOT LOWER OR CUT OR HAVE DIRECT 1 TO 1 RELATION TO LONG TERM MORTGAGE RATES!!!!!!!!!!!!!!!!!!!

Look folks the rates are not going to get much lower even if the Fed cuts to zero. Lenders are trying to get cash reserves built back up,they are making more on their SRP than before. What the common public does not understand is they really dont want a 30 yr fixed at 4%, that means your 401k or other investments are in the tank.

God help us all!

]]> By: Josh http://www.mybudget360.com/worst-ever-housing-market-in-california-the-numbers-revealed/#comment-162 Josh Sat, 29 Mar 2008 06:28:53 +0000 http://www.mybudget360.com/worst-ever-housing-market-in-california-the-numbers-revealed/#comment-162 Did you really just make a comparisson between the FED funds rate dropping 300 bps and mortgage rates only dropping 37 bps? How many times must it be explained that the FED funds rate does NOT cause mortgage rates to drop? In fact, every FED funds rate cut since 2007 has caused mortgage rates to immediately and sharply increase. There are many causes for this, inflation fears being the leader. Please do not continue to misinform the public that when the FED drops the FED funds rate mortgage rates also drop. That is WRONG!!! Did you really just make a comparisson between the FED funds rate dropping 300 bps and mortgage rates only dropping 37 bps? How many times must it be explained that the FED funds rate does NOT cause mortgage rates to drop? In fact, every FED funds rate cut since 2007 has caused mortgage rates to immediately and sharply increase. There are many causes for this, inflation fears being the leader. Please do not continue to misinform the public that when the FED drops the FED funds rate mortgage rates also drop. That is WRONG!!!

]]> By: robert fisher http://www.mybudget360.com/worst-ever-housing-market-in-california-the-numbers-revealed/#comment-157 robert fisher Fri, 28 Mar 2008 19:34:22 +0000 http://www.mybudget360.com/worst-ever-housing-market-in-california-the-numbers-revealed/#comment-157 Last year seniors had a chance to lock in their home value with a reverse mortgage. All the financial advisers told them it was a bad idea. There is egg on their faces now. New news!!! HUD requires all credit lines on reverse mortgages to pay an extra 1/2% , compounded daily, on credit line balances. That means that a senior, 62 or older, that gets a reverse mortgage will earn about $4500 per $100,000 in their equity credit line. Its a no brainer....the costs of the reverse mortgage are recovered within 15 months and equity interest keeps on pouring in each year. That means that no matter what the housing market does in the future, you are earning interest on the equity in your home. Reverse Mortgages are perfect for Seniors who DO NOT NEED CASH. Let's see the financial specialists knock this one down. For more info see my blog : http://www.xanga.com/reverse_mortgage Thanks for your time. Bob Fisher bob@az62.com 623-214-6663 Last year seniors had a chance to lock in their home value with a reverse mortgage. All the financial advisers told them it was a bad idea. There is egg on their faces now.

New news!!! HUD requires all credit lines on reverse mortgages to pay an extra 1/2% , compounded daily, on credit line balances. That means that a senior, 62 or older, that gets a reverse mortgage will earn about $4500 per $100,000 in their equity credit line.

Its a no brainer….the costs of the reverse mortgage are recovered within 15 months and equity interest keeps on pouring in each year. That means that no matter what the housing market does in the future, you are earning interest on the equity in your home.

Reverse Mortgages are perfect for Seniors who DO NOT NEED CASH. Let’s see the financial specialists knock this one down.

For more info see my blog :

http://www.xanga.com/reverse_mortgage

Thanks for your time.

Bob Fisher
bob@az62.com
623-214-6663

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