Fed $8000 credit will expire on Dec 1, 2009 and it is for first time buyer only. They are talking to extend this plan for few more months…. or not, keep eyes on the news.
CA $10K has been used up already !!! don’t think about it.
Artifically low interst rate will be gone after end of Oct ! because Fed won’t buy the securities after end of Oct. If investors put money on bond, then the rate may be kept in low level. But if they jump to stock market, not sure how high the mortgage rate will go and how the house price will drop further. You can either buy a cheaper house or lock a lower rate I guess.[/quote]
Not quite that simple. There’s been talk about extending the $8K First Time Buyer credit another year and increasing the amount to $15K.
At this point the Fed does pretty much what the Fed wants. They may or may not keep buying.
Bottom line, the Gov’t/Fed shouldn’t be involved in housing. The more involvement, the more distortion. What we are seeing is essentially economic warfare declared on the working class by the “rich”. All helped along by the “me first” mentallity of the “boomers” are whatever you’d like to call the older class. It’s not a financial problem, it’s a cultural problem.
One of paradigms that I encounter on a daily bais is that of, “I’m entitle to it”. The one thing they keep forgetting or just want to ignore is that resources are limited. The more poeple at the table, the smaller your individual piece of the pie.
As the worlds population grows more people will be the table. As much as our gov’t preaches global equality, human rights, health, wealth and prosperity for all, it can’t happen. The policies and the feel good speeches are at odds with each other demonstrating that the gov’t clearly understands that fact. They keep us chasing the scraps while they feast.
We’re all so worried about terrorism, global warming, having the latest and greatest gadget/clothes/granite counter tops/SS appliances that we as a whole don’t notice much. In the last decade, we’ve had the Patriot Act, Bankruptcy Act of 2005, TARP, and it appears as though B of A was forced to buy Merril Lynch. All without much interest of the general populace.
I really think that as time passes, a large number of recent home “owners” are going to be kicking themselves. They are going to realize that they don’t really own anything. The home and the gov’t/banks by proxy will really own them.
I reaize that this text is probably a little disjointed as I feverishly write this during a break but, I really urge everyone to give it some thought.
