Interest rates will NEVER get lower than they are now
Bad Economic News But There Some Hope for 2011
If you were ever going to consider refinancing Everett you might consider now the time to do it. Now is the time to buy if you can. Homes for sale Everett will never be cheaper because interest rates will never get lower. By the end of 2010 interest rates are expected to be around 6.25% to 6.5% for a fixed 30 year home loan.
I am not drinking the Obama Kool-Aid. Every time I hear the MSM (main stream media) saying we are coming out of this recession I want to puke. I see 10.1% unemployment. But the real unemployment numbers are closer to 22%. I see a very telling statistic in the unemployment numbers. A way to gauge the level of a recovery is how long workers have been unemployed. 27 weeks unemployment is the measuring point. Well the percentage of workers unemployed longer than 27 weeks is about 40%. That means we are developing a chronic long term unemployment problem. This is the same problem the Europeans have. In fact the Mortgage Bankers Association predicts 10.1% for 2010, 9.4% for 2011 and 8.3% for 2012. But these numbers are very deceiving. They don’t count people who have run out of benefits. They don’t count people who are under employed. They are deliberately misreported by the government to make the numbers look better. Now by European standards this level of unemployment is not bad. By American standards this is unacceptable. If you are considering refinancing Everett it is hard to do if you don’t have a job. When you have homes for sale Everett nobody can buy Everett real estate without a job.
If you are in the business of refinancing Everett the next 2-3 years look very bad. Again according to the Mortgage Bankers Association the dollar volume of homes for sale Everett will improve slightly in 2010. But they predict that the volume of homes that refinance Everett will fall by 65%. That makes 2010 a train wreck for mortgage brokers Seattle or anyone else who originates home loan refinancing.
There is a bit of a silver lining in this dark cloud. The numbers on foreclosures are terrible in California, Nevada, Arizona and Florida. When they are taken away it doesn’t look quite so bad for the rest of us. Now if Mr. Obama begins to see that destroying the economy is not in his best interest maybe we will survive this. So your efforts to refinance Everett may not be in vain.
Jim Johnson and comments are always welcome