It’s Getting Better All the Time
It’s Getting Better All the Time
Federal Reserve Chairman Ben Bernanke has forecast an end to the US recession, which he believes will be kaput before 2010. Bernanke also told the Congressional Joint Economic Committee that the collapse in the housing market, which began three years ago, may have bottomed out, something we’ve been saying for the past month.
Forecasts, especially about the future, can easily go astray, so we don’t want to put too much faith in the Fed chairman’s prognostication. But many signs are appearing to suggest the recession won’t go much deeper. The latest comes from Mr. Bernanke himself, who said last week that “early indications” show that investor demand for the central bank’s loans to buy asset-backed securities, including mortgage-backed securities, will rise next month from May’s total, suggesting confidence in so-called toxic mortgage securities is growing.
The banks are another sign all might be well. They have been loosening their purse strings of late. Mortgages are more readily available, and so is consumer credit. This tells us that the banks’ balance sheets are improving, as has their outlook for the future. Our outlook, meanwhile, has already improved.
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7 Responses to “It’s Getting Better All the Time”
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Dean,
Each day there seems to be another tidbit of positive activity and there seems to be an optimism growing amoung consumers.
We are seeing high traffic at most of our open houses, people waiting in line over this past weekend to put deposits down on new condominiums in South San Francisco and the like.
Very encouraging!
Brian
Hi Dean
Sure sounds promising, the signals point upward or at least level, which is encouraging. Suspect the level of unemployement over the next three months will share a lot about the future, and as you mention the flow of credit into the non Fanny Mae mortgage market may just be the most telling.
Very interesting times, thanks for sharing.
YES! I love it! It’s great to hear positive news coming from a loan expert! San Bruno is feeling a BIG wake up in home sales!
It seems like we are seeing the big banks come out with new jumbo or portfolio products on a weekly basis. They must see profits for these products on the horizon! The banks currently offering good Jumbo products are domiating that market. However, most require a least 20% down. Flahback to the early 90’s.
That sounds fantastic, Lupita and I have already noticed a 360 degree change in the east bay market, there is less and less homes available for sale! So it sure seems promissing for our economy and we’ll hope for more good news.
Hi Dean,
Great Post, prices are low, there is still a decent amount of inventory, and it seems like the banks are beginning to open up a bit more for loans. Homes do not seem to be staying on the market as long and there also seems to be less homes on the market. More buyers looking at less properties on the market, simple supply and demand.
Each day we hear another bit of good news – the media must be going crazy without bad new about real estate.
Larry