Part of being the best real estate investor that you can be is being able to ask those question that you don't necessarily want the answer to or questions that others are incapable of asking or understanding. Undeterred pursuit of research, information gathering, and the willingness to analyze the market will make you a more diverse investor capable of thriving.
This is a little information to get you thinking.
The Senate Banking Committee has proposed legislation that would start to wrap-up Fannie Mae and Freddie Mark and replace it the government lending institution with a new insurer called the Federal Mortgage Insurance Corp. Although there's no timeline for this yet, policy analyst and senate leaders believe that this bipartisan legislation most likely restored a stable economy.
According to most policy analyst, secondary lending will see some changes in the near future. There are several options up for debate: a) policy restricting federal involvement with a fully privatized system, b) entirely public system dependent on government backing, or c) combination of the two.
There's no concrete answer as of now. We know that isn't really an answer but it indicated the need to stay informed about Asia especially China's growth debt crisis.
Excess reserves are bank reserves in excess of a reserve requirement created by a central bank. This means there is more cash than required. Economist and investors argue over how this effects lending. But in most cases economic analysis reports that banks "should not and cannot lend out reserves" and ultimately "do not crowd out lending". However, inventors argue excess reserves result in paying banks not to lend.
Real estate experts and economist argue that we are starting to see slow recovery and increase inventory due to new build and more inventory coming available but to expect traditional lending to remain difficult. New builders have increase their prices and interest rate has gone up in recent months increasing the amount we pay for buying a home.
Rates will continue to rise. Recent legislation going into effect will continue to make it difficult to get lending and interest rates will also continue to rise moving forward.
Keep educating yourself
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