Dean Rizzi

The Costs are Outweighing the Benefits
June 29, 2010 · · 3 Comments

We’ve stated that the benefits of low interest rates have run their course. We hold to our contrary opinion that low rates are actually hindering more than helping markets these days. Consider the mortgage market: Even though mortgage rates are dwelling in the basement, fewer people are applying for mortgages. The MBA reported that purchase activity declined 1.2 percent to the second-lowest level since 1997 last week, while refinancing activity slid 7.3 percent from its May 2009 highs.

The Federal Reserve’s low-rate policy is hardly inspiring confidence. “Rates must be low because the economy is circling the drain,” so the man-on-the-street rationale goes. It’s the wrong message to send, because promoting risk aversion also means promoting inertia. Risk-averse markets are simply less willing to engage in riskier, but worthwhile, economic activity.

This risk-averse sentiment is readily reflected in the capital markets, where the relatively non-productive assets of gold and Treasury securities continue to be the investments of choice. That’s unfortunate, because we’d all be better off if there were more investment in the very productive (though riskier) assets of home purchases and renovation and mortgage lending.

 www.deanrizzi.com

Lee Ginsburg

Getting a Loan is Not Impossible
December 3, 2008 · · 10 Comments

www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/11/30/RE8014CT0J.DTL .      

I had some good friends over for Thanksgiving.  Pretty early in the evening the question came up; “Lee how is the Real Estate Market?”  “People can’t get loans? Huh”, he stated. This occurs often.  Everyday it is mentioned the “Credit Crunch” we have to loosen up credit.  I hope everyone reads “You Can Qualify For a Mortgage, It’s Just Tougher” by Marni Leff Kottle of the S.F. Chronicle,  Read more

Nicole Machado

Home Sellers Everywhere…
July 31, 2008 · · Comment here

Home sellers everywhere contemplate whether now is the time to “move up” the real estate ladder and upgrade. Some think they can’t afford to move up because they have lost equity in their current home since the market has taken a turn. When in fact they haven’t lost anything in all actuality. If it wasn’t time for you to sell your home when you had that supposed “equity” well then you never had it at all. If you wait to “move up” the cost of your new home will cost more. You want to upgrade when prices are down so your new mortgage is more affordable and while interest rates are still at hystorical lows. Sellers put your buyers hat on… think like a buyer and not like a seller, in the end you’ll be happy you did!