Bailout Bill Passed Today - Lorin's Weekly Report
Posted by Dennis Pease on Friday, October 3rd, 2008 at 7:36pm.
I can't pretend to know the outcome of this “bailout bill”, but I have to say that, even though it may not have been necessary, (we'll never know now), it probably will not be our downfall. Both the Senate and the House have now passed it, and it's on its way to the President's desk for signing.
The one thing that would concern us all, is if the Treasury has to print more money to implement this bill. That would certainly raise the fear of inflation, and could ultimately bring prices down in the bond market, and likewise mortgage rates up. However, if the whole thing frees up funds for lenders to lend, then we'll be in better shape in the long run. Time will tell. As you'll notice though, with all that's been going on, mortgage rates have not changed from last week (see below).
From here on out it will be day by day, and probably several months before we know what's come of this. On the other hand, if my original thought was correct, the markets will just keep going up and down daily as they have over the last 3 months with the overall trend still being a straight horizontal line. But I suspect we'll see a greater amount of optimism, which is the key to growth in all industries.
Optimism starts at home, “don't worry; be happy”. More importantly, be productive, because when things get rolling you don't want to be on the backside of the wave.
Have a terrific weekend! Call me if I can help. (use my cell phone after hours) 517-8758.
The following rates are based on 30 day locks with no discount points, as of this morning. They are not come ons, they are the rates your buyers will most likely get from a reputable lender, regardless of what is advertised. Certainly there are other specialized programs available, depending on the qualifications of the buyer.
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30 year fixed conforming = |
6.000% |
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15 year = |
5.875% |
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3/1 ARM = |
6.250% |
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5/1 ARM = |
6.250% |
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Jumbo fixed = |
6.250% |
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Jumbo ARM = |
7.500% |
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FHA/VA 30 year fixed = |
6.000% |
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Prime rate is currently = |
5.000% |
Authored by Lorin Wamsley, CMPS - Senior Mortgage Consultant, Precision Funding
Phone: 541-681-8787
Dennis Pease - Real Estate Broker invites you to see more Eugene Oregon Real Estate information and All the Area Real Estate Listings . If you are looking for a mortgage consultant, call Lorin at the number above and tell him you saw him here.
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Share13 Responses to "Bailout Bill Passed Today - Lorin's Weekly Report"
Hi Dena, I think you put forth a very realistic scenario.
So far today I read that the original bill that was introduced was $700 billion but this second bill that was accepted and full of junk is currently estimated at $1.2 trillion.
I think we all know that this is just the start, now everyone wants bailed out. California is asking today for a bailout.
Remember when President Clinton wiped out the deficit, I don’t believe for a minute that it really happened. I feel it was a magic pen and very creative accounting that wiped it out. Now realize only the government has that magic pen. In the case of Enron it was catastrophic and illegal.
The new President may have to bring out the magic pen again. ;)
Hang on! This could be a very rough ride indeed.
Posted on Tuesday, February 17th, 2009 at 1:58 AM.
I'm with Dena and I fear that we may not have seen the worst of it yet.
Posted on Tuesday, February 17th, 2009 at 1:59 AM.
I try not to get overly concerned with things I don't have any control over. I have buyers still purchasing homes, lenders are loaning money. Of course we are all affected by these events and it scares enough people that I have seen drop in website traffic, but at the same time I have had 2 people contact me this week about investment properties. Where would you rather have your own money right now? Would you feel it is safer in the stock market or real estate? With real estate prices down and deals that can be had, rentals look attractive again. People still need to live somewhere.
Posted on Tuesday, February 17th, 2009 at 2:00 AM.
You are 100% right about that. For the overvalued markets-- now is the time to buy. For those of us who never saw the skyrocketing appreciation--- our market is stable. If buyers hold off and try to "time the market" they are going to end up paying higher interest rates. And that just doesnt make sense.
The buyer who buys now and intends to live in their home for the next 5 years is going to do fine. And investors are going to better as well. When credit was easy to come by all the decent tenants were sucked out of the market. But now tenants that want to be homeowners have to verify their income and assets. So more people will be in the tenant market.
Posted on Tuesday, February 17th, 2009 at 2:01 AM.
What needs to happen is consumer confidence needs to get strong. There are a lot of qualified buyers out there but they are afraid to buy now because that everyone is telling them it is a bad time to buy.
Posted on Tuesday, February 17th, 2009 at 2:03 AM.
I was watching CNN this morning and Giuliani was on saying that he anticipates that beyond the most recent bailout, there will still need to be another 0-0 billion in relief to the banks. Definately going to be a rough ride!
Posted on Tuesday, February 17th, 2009 at 2:04 AM.
Hey Scott, I think there was a typo, how much more money is Giuliani saying he anticipates?
Posted on Tuesday, February 17th, 2009 at 2:05 AM.
Yeah, that's a typo! This morning Giuliani said 250-300 BILLION more dollars. Not a small number!
Posted on Tuesday, February 17th, 2009 at 2:06 AM.
These numbers are staggering, it's so easy to throw those B words around until you really think about how much money it really is and most of us just can't compute that in our minds.
I think Giuliani's estimate may even be low but I want to put this in perspective so it's easier to understand these numbers.
I just checked here http://www.nationalpriorities.org/costofwar_home and so far the total cost of the war in Iraq has cost less than 600 Billion. I think that makes it a little easier to understand just how much the 750 Billion that President Bush passed and now 800+ Billion that President Obama will get passed and then this estimated 250 -300 Billion really is.
That would be about triple what the total Iraq war has cost the U.S. so far. I just don’t see how our country can spend that do you?
Posted on Tuesday, February 17th, 2009 at 2:07 AM.
The Iraq war is a whole other can of worms and anyone I talk (who is a Bush hater) goes on for hours about no WMD's and justification to go into Iraq. Well, what are we going to do about it now.. Can't do anything, but that money sure would have helped out in this country's time of need.
The U.S deficit is going to certainly be in the trillions. I am 100% patriotic and aside from going to the frontlines I can't think of anything else I can do to support this country. Whether it be democrat or repub, everyone needs to put the parties aside and work together instead of criticizing. Rules and regs need to be not just placed, but strictly enforced with banks including the Wall Street scums.
On a side note, when you get a chance, if you want to see how crazy things are behind the scenes with our true story version of the show "24", go to YouTube and look for "Confessions of an economic hitman, By John Perkins". It will blow your mind.
Posted on Tuesday, February 17th, 2009 at 2:08 AM.
From what I am seeing the stock market sure does not seem to care about this. Now it is the turn of the Europeans to try to save their financial corporations. Looks so far as if they are as inept as our government was.
Posted on Tuesday, February 17th, 2009 at 2:09 AM.
I agree that it could take a while to find out what the real, long-term effects of this bailout is on the lending market. I hope it does indeed help that part of the economy. However, I think the main reason for it was just to boost confidence. Without it, people would continue to get scared, and when fear and panic begins, there's a rush to withdraw from banks, etc. I think the government just felt like they needed to do something to show that something, anything is being done so the stock market wouldn't crash any further.
Posted on Tuesday, February 17th, 2009 at 2:09 AM.
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I think that the best case senerio here is that we have an incredibly rough ride. Worse case senerio it doesnt work and we go into a deep, deep recession.
Also-- kind of like the "estimated cost of the war" -- this 700 billion dollar price tag is what they told us it will cost. It will cost at least twice that much. Mark my words.
Now we are going to see them subcontracting the buying up of these assets. Guess who the subcontractors will be?? I'll give you one guess. ( hint: famous stock market street in New York)
The credit rating of the US will suffer. Our currency will spiral down. That will benefit US global companies because US exports will be cheap. So technically it could help the trade deficit. But interest rates will eventually have to go up.
Posted on Tuesday, February 17th, 2009 at 1:57 AM.