First the bad news: New home sales have hit a 7 year low last month. This is not great but was not totally unexpected given the current state of real estate.
There is some good news out there that bodes well for the future of the market, however. First, the yield curve is steepening indicating less of a risk of a recession. Next, lenders are going through with some big mergers and acquisitions which is another positive sign for the economy in general. And finally, the Federal Reserve reported that there are no outstanding loans to lenders at the discount window.
These three things are positive because they show that the Fed's moves have helped the market finally start digesting the bad subprime situation, recession isn't as big a worry to increase the housing problem, and if people are still employed they will eventually get around to buying real estate again. So, today was a good day as far as news goes.
Your comments are always welcome!
Brought to you by Professional Mortgage Group, Inc. in Columbia, Missouri.
Thursday, September 27, 2007
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