Gloomy news spells one thing: O-P-P-O-R-T-U-N-I-T-Y

Has all the gloomy headlines got you down?  I know it’s been tough to wake up each morning and hear that another bank is laying off employees, another auto-maker is in dire straights, another country is in need of a bailout.  There’s no question that the news can drag you down.

However, in any economic environment opportunity exists.  Here are two ways in which you can benefit in the months ahead:

1) Mortgage rates are already low and may move even lower.  I have blogged about deflation on many different occasions.  Here’s what you should know about deflation: if the financial community expects that deflation is likely to occur in our economy mortgage rates will move lower.

In fact, the historically low rates of 2003 were a result of Alan Greenspan warning of a deflationary environment in our economy (although his warning never came to fruition).  If you are a homeowner and would like to reduce your mortgage payment this could provide an excellent opportunity.  We would encourage you to call us BEFORE mortgage rates dip so that we can analyze your situation and help you calculate how low rates would have to go in order to have it make sense to refinance.

Here are some links to better understand deflation and mortgage rates:

-Postings: #1, #2, #3, #4

Here is a link to the rate update for November 20th where I include a you tube video explaining deflation and why it would cause rates to move lower.

2) Homebuyers will have HUGE leverage in negotiations this winter. If you don’t own a home now and are waiting for prices to drop further you may want to consider buying this winter.  Typically November and December are slow months for buyers to make offers on homes.  However, sellers are still hoping that one person will come along and make an offer.  With sellers strongly outnumbering buyers we expect that there will be some major bargains this winter.  In fact, we just had a client buy a home for $235,000 below appraised value!  If you’re in a position to buy a home your timing could not be better.

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.