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Equity real estate (801) 864-1655 mobile http://www.utahcityhomes.com

Saturday, October 4, 2008

LOWER THE RATES... THE ONLY WAY

Bailout, Bailout, Bailout! You hear it everywhere right now. But what is it? The treasury to hurry and buy bad debit?

Everyone agrees the the catalyst for this whole problem is the housing market. Prices went up quick, everyone with a shovel became a builder, supply rose and prices flattened. To make matters worse many loans reset and their rates where too high for many to afford... supply rose again. Now we are facing job layoffs...

I have been in the middle of this storm for over a year and a half. Real estate has become a job again instead of easy money like many before me. I see this storm just finally hitting other markets and sectors now.

My big question on the bailout is how it will solve the housing market? How will it help the people on the edge right now? They are struggling to make their payments right now but are upside down and not working as much as they were. How will it help them?

I have been criticized for saying this but I'm convinced that the only way out is to lower the rates. I know we are at all time lows already and the risk of inflation is huge and I agree. However, lowering the rates is the only way to stimulate the housing market and save the people on the edge right now.

If I'm wrong please comment I would love to hear other ideas.

1 comment:

Unknown said...

I agreeeeeeee to that, lender should lower the rate of mortgage so the homeowner can continue pay and not loss their house. Nice suggestion.
'cheers'
Kathy
panama real estate