Nothaft, Baker, and Lereah on CNN

[powayseller]

What’s the outlook for the housing market?

Lereah: Prices will fall until mid-2007, and then pick up again. Sellers need to lower prices to get buyers back into the market.

Nothaft: It’s a good time to sell. Lower interest rates could bring more potential buyers into the market.

Baker: Prices will fall 30% nationally, and 40% – 50% in bubble areas (Washington DC, Boston, So CA, FL), over 5 years. The dot com bubble took 2 years to deflate.

Any advice for sellers? Should they sell now or wait?

Baker: Don’t wait, because the market will be worse in 6 months.

Nothaft: Sell now to take advantage of the lower interest rates, which will bring more buyers into the market.

Should you refinance?

Nothaft: definitely refinance if you have an ARM. Get a 30 year fixed or another hybrid ARM.

Any other advice?

Nothaft: Take out a HELOC so you can make other investments and diversify.

[PerryChase]

” Nothaft: Take out a HELOC so you can make other investments and diversify.”

Yeah, take out a loan on a decling asset to make other investments?! That’s not diversifying but rather taking on more risk.

[powayseller]

The CNN anchor smirked at his comment and quickly added, “That’s just like putting more debt on a credit card” and the segment ended. Nothaft was just pushing the Freddie Mac agenda.

[speedingpullet]

And, c’mon, who on earth wears a Bow Tie at 6.30 in the morning?

[Author]

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