Mortgage Discussion for the Panhandle area

Yes it is true the Federal Reserve has acted to correct our market conditions. Yesterday was BIG in the mortgage world as First Magnus went belly up and Countrywide borrowed 11.5 Billion to keep funding loans. Rumors are rampid that Countrywide will be filing bankruptcy soon. I am not sure I believe the rumors but the mortgage business is in crisis. What does all this mean? I have to say not too much. Mortgage companies who were lending money to bad risk customers will get what they deserve. The rest of us who always closed good sound loans will not be affected. Realtors should not see many changes either. You will have some trouble closing Jumbo ($417K +) loans in the short run with some mortgage companies and banks but we are still closing plenty of them. The cut in rates will help the housing market as well as the liquidity of the mortgage business. If you have customers sitting on the fence about buying now may be the best time as rates will start to head lower. When rates fall housing prices will rise.

Thank you for your time

Joe Woodall

America's Mortgage Experts