The Real 411 on MEDIAN - Bonds- What Does It All Mean?

What's

Your

Market's

Median

Home

Price?

http://www.realtor.org/research/research/nar_research_maps_msa

Median: What Does it Mean?

http://www.realtor.org/research/research/median

Metropolitan Median Prices

http://www.realtor.org/research/research/metroprice

State and Local Market Information

http://www.realtor.org/research/research/metrohomepriceanalysisreports

BANKS, BONDS, & INTEREST RATES
WHAT MAY BE IN STORE FOR EVERYONE

So, what a interesting week, huh? New reports of Banks and stocks are up, then down , then up, then down. Sometimes many people wonder when will it end, if ever and what does it really mean for me and how does it affect Real Estate and does it affect mortgage interest rates?

Well, here is an example for you:

In the huge mess that was the stock market, many folks decided that the stock market was not their best bet for investments. This may or may not be true but many people took what money they had and choose other alternatives for investments.

One of the options many people choose to invest in was bonds. Bonds offered by banks that offered a low return but felt safe and secure.

Here is the deal. Once the banks sold all of those bonds they did earn some quick income but on the flip side for the banks they MUST earn more $ so that they can pay up on the bonds that they sold.

Banks must earn money so that they can pay bonds and operating costs and earn enough left over to again pump back into loans to earn more money.

That being said - think for a moment about how banks earn money. Banks earn money by the interest they charge on their loans, any loan.

This means that in order for the banks to cover the costs of these bonds (when these bonds come due) they must bring in more money from the interest rates they have in place from the loans and lines of credit that they sell.

This brings us full circle - BANKS MUST START CHARGING HIGHER INTEREST RATES. Period.

Here is the tough part. I do not know when, but it is very certain it is bound to happen. The opinion on this is that when they do start to go up they may not creep up but may in-fact shoot up.

This is not a scare tactic. This is just a FYI of what is going to be coming down the pipeline - sooner or later.

That is the bummer of what is bound to happen in our already crazy economy. This will of course make a home purchase out of reach for many people and for others - this will limit what they can afford.

So, now that you know - "So What" you may say. How does this affect you?

1) If you have been on the fence about a home purchase - it is time to get off the fence - NOW.
2) How do you start the process of getting a home and the financing that is involved?
3) Talk to me. Talking to me is Free, Simple, & Easy.

I know lenders who I trust. I know Realtors here in California and have a network or Realtors and Agents across the USA and beyond.

If you have been following my work you will notice that you get advance notice of HOT BUYS posted to Twitter - that are missed by many people.

You get access to search the MLS like a Real Estate Agent and can see the homes for sale in your neighborhood and community that may not have signage. You also get access to see your competition if you are looking to sell your home and get access to view ALL HOMES listed on the MLS. You may be surprised at the amount of homes that many agents will not show to clients. Also if we decide that we are a fit and you are Ready, Willing & Able, you will be given a unique hands on approach to finding the perfect house that fits you and your lifestyle as well as your budget.

One thing that I do - I will tell you how it is. Not every person who comes to me is ready, willing or able to start their Real Estate process. I choose to represent those who meet the absolute criteria of a Ready, Willing & Able Buyer, Seller, Investor.

With a limited and exclusive list of clients this allows me to spend 90% of my working time with my clients instead of 90% of my time trying to find new clients. This also means that I rely on my current subscribers, friends, clients, and business associates for referrals.

If you are ready to step up to a new level of service - Talk To Me. Let's see if we are ready to get moving and take advantage of record low interest rates and some of the lowest prices on homes we have had in decades.

IN CLOSING -
Here is this weeks info on Rates from someone who I know and Trust,
Heather Millspaugh

Curious? Want to know more? Talk To Me!

Ken Webb - Realtor/Agent OCAR, NAR, CAR F1RST TEAM Real Estate
Email: kenwebb@firstteam.com Phone/Text: (949) 243-6649 DRE Lic # 01844181

SEARCH JUST LIKE AN AGENT
http://www.kwrealestate.listingbook.com

CURRENT REAL ESTATE NEWS
http://kenwebbkwrealestate.blogspot.com

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http://twitter.com/KW_Real_Estate

STATE WIDE AND LOCAL REAL ESTATE FACTS & FIGURES
http://kenwebb.housingtrendsenewsletter.com/


"The finest compliment I could ever receive is a referral from my friends and clients"