The Federal Reserve Chairman, Mr. Bernanke, has recently stated that the threat of inflation has virtually assured the end of interest rate reductions. The head of the European Central bank has just commented on the likelihood of an interest rate increase there to combat inflation.
Food and energy prices are soaring out of control worldwide. Our Leaders in Washington are caught up in partisan politics which benefits no one. In an election year, especially this one, we should not expect the "common good" to be on the mind of our leaders. They are too busy blaming the other party for everything that ails us and take credit for anything that goes right.
What does all this mean? Unfortunately, it will be more of the same for the housing market. Foreclosures are increasing by the day, with property values continuing to decline in many parts of Florida. Mortgage interest rates continue to be at near record lows but lending policies have placed so many restrictions on remaining loan programs that financing options for home sales are limited. Conventional loan programs are changing by the day.
Fannie Mae and Freddie Mac have recently announced eliminating their declining market policies; however, some major banks still have much of Florida as a declining market.
What are our options? We have previously published articles on FHA and VA loans, along with Hard Money loans. These articles are all posted on our blog, http://www.diversitymortgagenews.com/.
Next week we will focus on two articles, the US Department of Agriculture Rural Development loan program and a second comparing FHA and Fannie Mae financing options.
Our goal continues to be to be provide you with timely, pertinent information for you and your clients.
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