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-- just talked about the plummeting interest rates they are leading to a huge spike in mortgage applications take a look at a chart.
It clearly shows a trend mortgage demand jumping 48%.
In just a week last week reaching a level not seen in five years is rates on thirty year loans taken -- -- I would more than 80% of mortgage demand driven by refinance mortgages will this really help the housing market recover.
Here with the real deal we welcome to real estate professionals they've got the answers for you Greg rent a prudential Rand realty in new York and -- to group.
Of Coldwell Banker in.
California Bernstein sir what -- you -- -- the rates coming got a good health refi market for shore.
On the housing side there's no question that the -- commended the force that's the mean for purported deficit mortgage -- exist without government intervention.
So it's my hope actually that didn't make contemporary that they get a publicize the fact that this is all going to be over -- May -- at -- -- -- -- So that people know as the first half of this year comes about if there on the sidelines and a shot because they are.
We have a massive -- pent up demand right now in the northeast.
So if there if they know they can grab afford half fourth record of thirty year fixed rate mortgage but if they wait till July the back into the -- that's going to be -- Heidi I went -- in buying a house expectations.
Are everything because it's a long term advanced enough that you you make no long term investment.
More so than that in housing and expectations right now among buyers is that how the prices are gonna continue to go down -- -- Right right right a lot of people think that there -- certain areas that were really hard hit -- -- you can see there's obvious yes you can via property -- it out and cover your costs.
But for -- and most.
People are thinking even you know I catch myself even thinking this is a great deal you know I last week I -- home that thought maybe.
I want to buy this for myself.
But and then right behind that thought was well maybe prices might go down your confidence is a huge.
Issue and people are nervous about the economy there hanging onto their cash.
And they're they're taking wait and see approach and -- they really need to move forward and why.
I I think that rates if they were going down -- certain panic time.
As your other guests mentioned I think that the terrific incentive to it creates -- urgency in the market.
But -- we need to make it possible for more people to qualify for a loan.
And we need to get terrific incentives to get people.
To you know move forward in today's uncertain.
Economy otherwise we're just gonna see more miserable numbers -- -- you -- you know honey let me just.
-- -- if I could just start on one why you say we have to make extra effort to get people to glue to qualify for laws.
Aren't you talk about going back to the days of the sub -- we don't wanna go back there we want to make it.
You know more difficult for people who got mortgages don't we and so that they did we can make sure they'll pay off those mortgages.
Exactly -- look that's exactly what we have today but we've been set up going to where we were before we've actually made it a little harder.
You know the thing is that you can qualify if you have 20% to put down in most cases up -- a score 7218 or greater then you're probably get that and get a loan.
However -- you know we we have lenders working so hard to keep people that really shouldn't have.
Alone in the first place we have them bending over backwards to keep these people -- homes and -- we have very well qualified buyers.
Who have to jump through multiple -- And all this paperwork you know to get a new home loan and the new home loans are going to stabilize the economy.
I mean and stabilize the home market we really need more these people to participate and we need to make it a little easier on -- people but I don't think.
We should go back to where.
We were of course not -- you know -- -- -- heighten the guidelines a bit kinda makes an interesting point Greg do you think new home loans are not there or do you think -- over built in this country the point is how can we get housing to get -- with the housing needs to find floor.
How do we do that's.
Good question supply right now and -- -- housing starts.
Of of anything more than zero I'm kind of surprised because.
What are what do people -- -- building houses right now I think the fact is they have to because they've already got themselves committed they have to fall through.
But you -- drive yourself crazy trying to analyze and had forecast the housing market.
Based on historical stats we have something that we called the breath -- index OK it is very simple but you know I like that.
You go back to five years ago.
And it was such a robust -- market back then that we literally would advise buyers.
When -- want to show to see a property to fix their hair straight -- time to write the kids beat Bradley the -- the car and you know.
-- investment you make -- a good impression -- seller literally make a good impression on seller.
At the end of 2004 the buyers started to push those brought -- back again and say look we're not gonna -- this anymore.
That change in attitude and that of reflecting -- change behavior later on that and in 2005.
And that a change in the statistics at the end of 05 into 06.
Today right now fast forward to 2008.
And the sellers of pop in those attacks advisories and onion -- I doubt they don't care.
We're literally advising and -- you've -- staging right put under house to make a good impression on buyers we're literally right sizing sellers to take the pictures -- the wrong kids off the wall because that might offend the sensibilities of a buyer.
Because the virus on a picture their children on the wall there so the sellers -- -- that I can you know.
-- serious buyer's market.
-- -- -- Ten seconds ready go ahead Rick I want -- -- that I want to jump in there and I just want to clarify one thing that I said I'm not talking about.
New home sales I meant that we need new.
Mortgages new home loans.
That they knew buyers they -- well well qualified buyers are going to help stabilize housing that the -- and I want to make.
And also with what Greg says I agree that things that.
Kind of turned around but and -- we do something about confidence.
And with you know we're we're gonna have more a bit more of the same.
Kind -- we got to leave it at that Scotty to groups out in LA and Greg Rand prudential Rand really good to see a multi aired Christmas everybody figures have -- -- validate --
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