Been gone for a while.

Well, I haven’t posted for a while but it doesn’t seem like anyone has come to my blog anyway. Ho hum…

Another Friday

Friday is my favorite day. By Saturday night it feels like the weekend is ending. Being that today was Good Friday (an unrecognized day in Utah) bond markets were closed and nothing happened in the housing market. Wait…one thing did. I had a listing close. It was a great house in Draper, Utah that was owned by a good friend of mine that went through a bad divorce. I was glad to see this sell as it was a huge burden on my friend as he had relocated to Florida. I’ll be meeting with a neighbor this weekend to list his house as he and his wife have relocated. I hate to see my friends moving away. Most of my friends have left Utah over the past year. Must be some sort of Exodus.

Another shoe to fall in the housing crisis

Today several of the investors we work with at my mortgage company Desert West Financial Group, Inc. in South Jordan, Utah either pulled all of their loan products that require mortgage insurance (MI) or changed the requirements so that all borrowers getting mortgage insurance had a minimum 660 middle fico score. This is a huge stake in the heart of an ailing housing market. Many first time homebuyers were kicked out of the housing market today. While there are many things that can be done to improve a buyer’s credit scores so that this isn’t an issue, it can take some time and a very qualified and experienced lender to make these things work. Don’t expect the loan officer/teller/new accounts clerk at your local Utah credit union to help you out on this one! In a way, many of these changes are good for the experienced and seasoned loan officer or broker as they add value to our skills, knowledge, and experience. Some of us turn borrowers away while others like myself figure out a way to get things done.

Uggh! More Insomnia…

Maybe it has something to do with the sad state of affairs in the economy. One could only hope that with interest rates so low that it would help the average person. Not so. Interest rates are low, home prices are at bargain basement levels, yet the average first time homebuyer in Salt Lake City can’t make the jump from renting to home ownership because of the credit crisis. The media and politicians try to blame it on mortgage brokers and lenders. In a smug way, I was glad to see Bear Stearns go down in flames. I hope Lehman and Merrill follow suit. They were the largest perpetrators through greed of the problems we all now face. Directly or indirectly this is a situation that is going to affect most Americans. If you want to buy a house be prepared for a painful loan process. If you want to sell a house, pray for your buyer that they have a loan officer and lender that fully comprehend the current situation in the credit markets.

No bloodbath on Wall Street today

Stocks were mixed today. Bonds kicked ass and mortgage rates improved! The economy can’t improve until real estate improves and the liquidity in the credit markets (mortgages) comes back. I am seeing signs of homebuyers sticking their toes in the water to check the temperature but not a lot of people willing to dive in at this point. It’s a shame. I just sold an incredible house in South Jordan, Utah two weeks ago. A year ago the same house was listed for almost $650,000. I can’t disclose the sales price yet as it hasn’t closed but I will say that we would have been tarred and feathered by the sellers had we presented the same offer a year ago. There really are some great bargains out there. Most of the buyers are chicken right now. Who wants to buy low and sell high anyway? Back when I worked for Prudential Bache as a stock and commodity broker it was the same story. People are sheep and want to follow the crowd whether it is religion, investing, or real estate. Remember…pigs and sheep get slaughtered!

Bear Stearns on sale…98% off closeout price! Everything must go…

Well, Wall Street still is making money of the mortgage industry collapse. Wall Street caused it and now they are buying up the skeletons. B of A acquires Countrywide, JPMorgan gets Bear. What a deal at $2 a share. Just a few days ago it was $30! I’ve been in this industry for years and what is happening now was predictable but still entirely unprecedented. Every day I hope that things will improve in our industry but it doesn’t look like we’ve hit bottom yet. It seems like we have quite a ways to go. The problems with our economy are fascinating in that I don’t think we have a clue as to how bad this might become. No one is panicking yet but I’m nervous. I was nervous two years ago when the yield curve became inverted. Put on your seatbelts…the ride is going to start now!

Friday!

What else is there to say?