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Mortgage Market Guide’s Barry Habib on producing the show “Rock of Ages” and the outlook for mortgage lending.
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The thirty year mortgage rate hitting a record low today for the fourth straight week this despite the fact that total bank loans.
Continued to decline in the housing market still struggling.
And we've got a mortgage expert who says if we want -- lasting recovery.
We'll need to make some tough decisions that may include getting rid of the mortgage interest rate deduction which so many of you know and love.
He's very have named chief market strategist with residential financial corporation -- to see if well this is this is quite dramatic to hear a mortgage guy has been doing this for many years say maybe we need to think about the economy more than just what.
Each individual gets out of a deduction are.
I'm not saying we need to get rid of it so hold -- a second -- said that if there is a overall plan that reduces the deficit that looks that.
Containing spending.
And we know that if you try and raise marginal rates we know that this -- negative -- even though that's the plays well politically it plays well the media.
It it really does it make sense to do that's OK so how do you raise revenues.
You have to take which some of the deductions that are out there wanna say this you know if we had a plan like that.
I think a lot of people would get around no sacred cows and that means you don't you don't want in your backyard -- Heck I think even people in real estate and housing would say if it's part of an encompassing plan.
It beats the alternative of saying hard -- -- marginal rates heart interest rates because we can't control deficit.
And that does more damage to housing and if you had an encompassing plan that's -- look let's Europe.
All the deductions everything not pinpoint one or another or secret count one or -- now mortgage rates are at all time lows however.
So we're bank loans banks are not -- out that much it's it's great to have -- -- interest rates but what good are they if you can't get a mortgage wolf they are good because we are seeing.
Demand in certain areas we are seeing the residential real estate market doing well we're actually seeing -- -- in some parts of the country but when people say banks aren't lending.
They aren't lending but you know what it's come out it is down eighty billion dollars in the last quarter that's that's nationwide eighty billion dollars -- 100% correct.
She thinks it's not because banks don't model and they do -- -- -- but demand is down to some extent.
And if you're talking -- residential lending it's gotten lot more common sense it's like it used to be.
1010 years ago twelve years ago before things got out of -- so you can't win or -- it.
If you too loose because a problem if you -- your -- says well that's not good enough so it's a fine line to walk I'm not saying it's right or wrong.
Say it's a tough tight rope to walk -- demand is down.
Again huge historic drop in rates and once again hitting those lows now the time to refi of people have been waiting and fence sitting this whole time.
-- it makes sense in the thing we've talked about here is is.
Take a look at your mortgage rates see how much you're gonna save each month figure -- those closing costs -- to recoup those closing cross in a year or so -- definitely do it but I do you think.
There's a good chance that rates come down even more.
I think that the ten year treasury comes down from about 175 or so where it is now to around 150 I think that the thirty year long bond maybe comes down -- -- close to 2%.
It's it's amazing but but all the drivers are there lot of weakness in in the economy still.
Europe money will continue to come from -- as the chaos continues to go there is they're going to be QE3 maybe.
Gotta have you changed your hats now mr.
Broadway producers soon -- a B movie producer.
Rock of -- which which was star Broadway fantastic show that you put on your Broadway.
Is now going to be a movie -- Tom Cruise Obama haters that's right that's -- -- -- what's the difference between producing a Broadway Show and getting involved in the film.
Both on the Broadway Show you know we had a great -- people and I was certainly had a hand in in contributing to that.
On the on the movie.
Very very little to -- -- that you know.
Live out here in the -- I am in the -- -- what -- you gotta cameo I think they were kind enough to leave me in just for one line don't really got me did you get did getting back to grab a dead.
But the movie is a lot of fun it's different than -- Broadway Show I see some of the same actors so well.
Constantin does have a -- as well he's got he's got a -- what well deserved but.
I think the movie is so excited and people like you comes -- June 15.
And -- a little different storyline in the show.
But the shows also picked up a lot of momentum from now as you know show you've been that's been -- a lot of this is the movie -- this is the movie before.
It was probably -- but it's important to point out that you at the the real height of the recession.
Turned her attention to Broadway producing.
And had a business background where you could strike deals with.
Broadway you know areas of -- and -- able to get a cheaper deal on a venue which is just incredible 'cause they were empty a lot of shows a close.
We were and we were budget conscious of course that we started off Broadway and we went on -- -- -- move into little smaller theater -- -- concern about not site you off Broadway had not brought play ball we're fed rocket stages folks.
You don't want to miss if the movies half who's gonna supply -- going to be hit very how to save six star power of.
