With all the negative news flying about regarding the financial markets, mortgage industry, real estate market, etc., surely there must be some silver lining around this cloud. In an email exchange with one of my mortgage experts this morning I was checking to see what the effect of the Lehman Brothers situation and Merrill Lynch sale to BOA would have on interest rates, availability of funds to loan, etc.
Here is the response from Randal McClanahan: "It will have no affect on availability of funds because the government has already said we will supply the funds need for FHA, Fannie and Freddie. We are seeing rates rebound from Friday's sell off and get back to great low. FHA 30 year fixed today is 5.5%. This should spur some activity I hope."
If a person can, they should look closely at their personal situation and make decisions based on that. If we take all of our cues from the media "experts" on real estate and finance then we would never buy or sell anything. Real estate, like the weather is absolutely a local phenomenon and is even widely varied within a particular community. Don't let the "Chicken Little" mentality of the media keep you from realizing your own real estates goals.
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