Rates on 30 year fixed-rate mortgages fell to a record low for the second straight week, as of December 25, 2008. Causing a surge in refinancing applications to the highest level in more than five years. Mortgage rates started falling after the Federal Reserve launched a sweeping effort in November to aid the housing market by purchasing the high volume of mortgage related dept and securities issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks. For home owners to qualify, however, generally they need to have a FICO score of at least 600. Although homeowners are taking advantage of these low rates to refinance their loans, the opportunity isn't available to those with poor credit or little equity in their homes. Home values in Southwestern Connecticut decreased a -9.17% in the third quarter of 2008, compared to the third quarter of 2007. And nationally, home values decreased -9.7% during this same period. Presently we a witnessing home sales plunging by 8.6% in Connecticut and foreclosures are still likely to increase.
What does this mean for the real estate investor?It has been documented that on a national basis, the number of foreclosures has increased every year for the past seven years. Real estate investors have an unprecedented opportunity to make enormous profits during this down market. Corporate layoffs,downsizing, and outsourcing have run rampant in the economy. Just look around your own neighborhood, you can't help but from seeing foreclosure signs on every street. Whether you are a real estate investor or shopping for your first home, when driving around you will notice for sale signs posted by real estate agents in your area. For each sign it is estimated that there are four houses in the same area in some stage of foreclosure. These circumstances create a high profit potential for investors in what is called "The Hidden Market." It is called that because people don't understand it; the uninformed public does not know where to find the information to make these situations viable opportunities.
Real estate investors and buyers be creative and take advantage of this situation Now. Fine away to create a Win-Win situation for you and the seller. There are motivated homeowners that don't want to lose their homes and banks that don't want to own the property. There is a saying that Knowledge is Power, and that is certainly true. But, Knowledge is also Money.
P.S.
Go to the link below to learn how to make Huge profits with Information Products.
http://www.1shoppingcart.com/app/?af=881236
George Benton Author
http://www.webrealestatebuyers.com
203-354-3089 or
203-451-4860
Tuesday, December 30, 2008
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