Real Estate Directory

Consumer Confidence >>

Home Sales and Gas prices did not stop a consumer spending binge in Novemeber. Spending wnet up the highest in 3 1/2 years( May 2004) -by 1.1%. This squelches fears of an imminent recession. A word used most ignorantly in the press currently.
 

Rates Go DOWN

The Federal Reserve cut two key interest rates by a quarter-percentage point Tuesday to the lowest level in nearly two years .In a 9-1 vote, Fed Chairman Ben Bernanke and his colleagues cut their target for the federal funds rate, their main economic tool that influences borrowing costs across the economy, to 4.25%. It was the third cut from the Fed in less than three months and brought the rate to the lowest level since January 2006.

The Anti-Google

This is brilliant, as ASK is positioning themselves as the Anti-Google. As a counter measure to Google's track everything you do approach to search, ASK is allowing you to opt out.

Interest Rates Low

Interest on 30-year fixed loans sank to 5.96 percent from 6.10 percent last week, landing at the lowest point seen since September 2005.

Well on the one hand...

Yesterday, little Chapman U of Orange County came out and said look for recession next year with more blood spilt in real estate. They are  predicting a national recession with the first decline in jobs locally in five years in 2008.

Economists at the school see a brief downturn—with a decline in the national economy in first and second quarters, and then a pickup in the second half.

They do however, see the  national economy growing 0.9%, driven by growth in the second half.

UCLA comes out today and says it irresponsible to use "r" word.

"Now there are countless prognosticators throwing around recession. That may be the best indicator that a recession is not coming soon," stated Ed Leamer, director of the University of California, Los Angeles, Anderson Forecast.

"Better remember a recession is not measured by the frequency with which the newspapers use the 'R' word. To have an official recession commencing anytime soon, we would have to experience a rapid rise of the national unemployment rate" from a level of 4.6 percent to about 6 percent by the end of 2008 -- a loss of about 2 million jobs.

Bill Gross Says Watch Out R

2008 will be “tumultuous” and the Federal Reserve may need to bring its interest rate below 3%, bond fund manager Bill Gross of Newport Beach-based Pacific Investment Management Co. said.

“To restart a near recessionary economy we may need to eventually go down to 3% or lower,” said Gross, the chief investment officer of one of the world's largest bond funds.

Historically, rate cuts have gone to 1% with recessions. After factoring in inflation, the Fed would have to go to 3% to achieve a similar effect, Gross said.

Thats all fine and good, but liquidity is a big factor in my opinion. I think most the challenge in real estate loans is getting funding.