Friday, October 31 – Market 1 Facebook Twitter LinkeIn

As expected the Federal Reserve ended its mortgage backed security purchase program, QE3 , this week. And guess what: Rates are still low! The Feds will continue to be very accommodative for a “considerable time” as stated in their Policy Statement on Wednesday. Inflation is still within the Fed’s target of 1 to 2% which gives the Fed room to continue it’s easy monetary policy and this means low rates for the near term! And low rates = more purchasing power! Just a one percent rise in interest rates lowers a buyer’s purchase power by over 10%.

The credit markets continue to loosen. Several of our investors have reduced their waiting periods after short sales and foreclosures. Do you have a client who had a short sale and no other late payments on any other accounts? If so, we can lend up to a purchase price of $1.4 M with only a 10% down payment! Next week, Cobalt/Caliber is rolling out a new loan program to qualified buyers with only a two year waiting period after a short sale even with other late payments. Details to follow!