In 5 or 10 years, will our children or grandchildren be able to obtain a mortgage? It doesn’t look that way…if you are keeping up with the government’s (or should I say the legislature’s) future philosophy on the finance world. What if the secondary loan market should disappear as we know it today? Will we have 30 year loans? Will we have 15 year loans?
If you’re keeping up with the news coming out of our nation’s capital…the end of Fannie Mae and Freddie Mac are on the horizon. I don’t have to be a physic to predict that we will have to come up with a larger down payment than we have been used to up to now. The mortgage crisis that we have been experiencing is a result of many factors…there’s plenty of blame to go around. One report that I read on Realtor.org even said the housing bubble was caused by population growth in “sand states,” such as Florida, Arizona, Nevada, and California.
Many foreign countries don’t have the mortgages like we are accustomed to. In many instances, they pay all cash or almost all cash to purchase a piece of real estate. In our world of instant gratification,we cannot imagine that. Well we had better start thinking along those lines if our federal government has anything to say about it, even our mortgage interest deduction is at risk. As REALTORS, it is our responsibility to stay on top of all these market issues…we owe it to our buyers and sellers and our profession to be well informed and knowledgeable – on all issues facing our industry. To the right you will see this week’s featured link: It’s one link to ten different articles on “Defending the Mortgage Interest Deduction”.
I look forward to hearing from you this week…
…until next Monday