Wednesday, December 24th, 2008
Merry Christmas!
First, the bad news -
The nation’s labor market continued to worsen in recent weeks, with the unemployment lines stretching to the longest in 26 years, the Labor Department reported this morning. First-time applications for state unemployment benefits jumped by 30,000 to a seasonally adjusted 586,000 in the week ended Dec. 20, the government said, based on reports of actual filings at state offices around the nation. That’s the highest since November 1982!
Next, better news -
Fixed-rate mortgage rates fell again this week, with the 30-year fixed-rate mortgage setting another record low, at least since Freddie Mac began doing its weekly survey in the early 1970s. The 30-year averaged 5.14% for the week ending Dec. 24, down from last week’s 5.19% average, according to the survey, released on Wednesday. It was more than a full percentage point below its 6.17% average a year ago, and hasn’t been lower since Freddie started doing its rate survey in 1971.
And now the Good news -
With interest rates as low as they are, the numbers for your deals should be incredible! Sure, it will be harder to buy a property with no money down; however, if you structure the deal properly, you will see that returned to you in short fashion. In addition to agreeable rates, there should be a surplus of good renters out there! Depending on your location, there should be a line of qualified renters looking for a good place to stay at a reasonable price. This could be due to the large number of foreclosures, but it is what it is. Markets are cyclical and the Real Estate market is no different. People need shelter, regardless of whether they were victims of a foreclosure or not. It is up to you to provide this to them.
And don’t forget about the number of vacant properties just waiting for you to acquire and fix up and subsequently rent.
Good Luck!
-Richard – www.TheFlipBoard.com
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