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Mortgage rates falling in most areas of America this week Freddie Mac is out -- its weekly survey -- here's a look at the averages nationally.
The thirty year fixed rate average down to five point 08%.
With a northeast.
Being the only region not just not showing any improvement -- because all the cash in Washington DC.
That was great -- these low levels is now the time for you to refinance joining us.
Is Greg Randy is managing partner would better homes and garden Rand -- good to see him Greg thank you could just an overall question first of all -- what have we this market.
What we have seen virtually the end of flipping houses right now nobody's nobody's look at what percentage of the housing market over the last decade when housing was booming.
Was flipping was it like 10% 20%.
15% or more exact numbers but it wasn't it depends on where you are obviously okay around here in the northeast where it's mostly impressed about 4050% and whatnot I don't know about the buying of flailing most of -- still people who are -- to occupy Lanka on the fringes the places where.
You have a lot of South Florida a lot of Southern California a lot of Las Vegas buying and flipping going or I should say buying -- not being able to flip.
And then getting stuck with -- a lot of that has been -- well that's what that's my point the fact is is that the flipping which.
May if you if you make it amalgamated represented six -- -- percent of the entire asthma and that's totally gone.
That's totally gone for at least the next next couple years would you agree yes and you know I'm glad to tell -- the truth -- the buying and flipping that's a Wall Street approach to investing that can work on Wall Street.
It only works in real estate when you catch just before the steepest part of the peak and then catch it right at the perfect time.
The best -- -- -- way to buy real estate is to buy and hold it I know it's kind of -- sexy and it's a little bit boring but.
We're finding people right now we're -- to get -- back to their heads again that this is not a short term play that it's back to.
Acquire something hold it the people that make the money in real estate build a portfolio.
But don't get short term -- way to less competition you have the greatest good the only good thing about that flipping that was going on besides some people make a lot of money for us and that was great for you and it did add competition -- zest to decision that it doesn't have right now.
That's true that's true as you were talking a moment ago that there's a there's a sense out there among people that these that -- short term mentality still lingering because for example.
The statistics that are being analyzed this year for the first time are comparing second quarter first quarter.
Or they're saying home prices in July -- good compared to June that's it's -- to be compare them July did you we always compared July the last July.
And so what I'm concerned about is that people are getting back of that mentality of having.
A sense of optimism which is good it's good for my business.
But it's not good when they think that what is -- -- effectively seasonality in the market.
Okay -- a comparison of second quarter the first quarter which is always better second quarter is always been the first quarter.
I guess what fourth quarter is always worse than third quarter so worried we're going to be sitting here in January hearing Kay Schiller comes out and the housing markets and have an a bust again because the numbers came tonight.
Well that what has been coming down rates and again we keep saying it's over and over can get -- you're never gonna have a combination of prices as -- -- race is slow that's the perfect combination for a by.
Now the great thing about housing are always new buyers are always people to come in that want.
To buy -- house and right now it's not only perfect time for that but you also this tax credit.
The first time home buyer tax credit how does that work.
It's working people -- there are people whose timing is being dictated by making sure they get it done before the end of the tax credit.
So what normally would be a slower market October would be slow for us -- was going to be.
It's crazy for us because this thing.
You have to get in close by the end of November so that's a good -- almost like a cash for clunker deal -- usually we're gonna have a a real drew tremendous release of this demand it's been pent up for so long that it extended don't have to extended you know I hear the buzz about that in the sense I'm getting is that they.
They like to credit they got for cash for clunkers you know warts and all electric credit they elected critically getting to that the housing recovery is happening because it's a cycle.
But it -- I'll text it is getting credit for it.
And so the government's gonna wanna see that continue all the way through next by the way is that one of these credit you have to pay backers had to give me.
That's not a -- that's that's a tax credit you have to put the money out and then you have to put -- -- -- -- -- is there any call for realtors to have some sort of thing where you have a don't tax credit that you don't have to give back at all that you get to to apply to your new home.
There is there is did the business roundtable is actually have has a housing component that made a recommendation to up -- the 151000.
Make it across the board for all -- by politicians gonna buy that you don't have got a housing market gone down perhaps they will if you're -- yeah -- the read October's numbers as being bad even though they're not and bill out of the bottom line you've got interest rates at historic lows housing prices weighed down off -- -- and this tax credit that's that's a perfect.
About triple and -- we try telling that they have to feel that and they they are still on the field are half true excuse me for not remember that Greg Randy good to see if thanks very much for being here was account.
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