Despite your outlook on the Presidential Primaries or your views on the current real estate crisis or opportunity (depending on if you are a buyer or seller), these are definitely exciting times.

The week started with the stock market taking a dive and the Federal Reserve attempting to head it off at the pass. A surprise move before the markets opened resulted in the fed funds rate being cut by 3/4 of 1%. They may not be finished yet. You may look for another cut at the end of January when they meet again.

These Interest Rates Are Giving Me Whiplash

On Tuesday, a 30 year conforming rate 30 year loan was being offered at 5.375% with no points. On Friday the same loan was up to 5.875%. A full half point increase. Time waits for no one. So if you waited to lock in your loan you now have the privilege of paying an additional $131 a month, or $1572 a year, which will be the amount of your government rebate check for you to use to stimulate the economy.

Fannie & Freddie Could Get A Raise

There is finally some serious discussion about raising the loan limits which could lower interest rates on loans from $417,000 to maybe as high as $729,000. The limit is already $625,000 for Alaska and Hawaii because they are classified as high cost areas. Wouldn’t you think that California and a few other select states should be included in this group?

Hello Sacramento

With all the talk coming out of Washington, you might think that Sacramento would soon get the message. Well then again we know that is wishful thinking. But if they did, our legislators should stop taxing capital gains like ordinary income and provide incentives for individuals to reinvest their money in the private sector. Why do the biggest budget deficits occur in the states with the biggest tax burden? Think about that the next time you ride the seesaw.