Category — Mortgages-Financing

BLOODHOUND BLOG has a thought for the day: government as a necessary evil.

For the first time I’m seeing political posts on real estate blogs.

This is a good thing.  I haven’t seen real estate blog post in favor of the current Administration.

TOTAL COMMERCIAL MORTGAGE HOLDINGS OUTSTANDING declined in the last quarter.   This is good.  Borrowers paid off more than new loans originated.

Cash is King.  Savings rates are soaring.

INMAN NEWS REPORTS, the 10 year T bill is stuck at 3.55%,  fixed rate mortgages are still at almost 5.5%, and the 30 year T bond at 4.44%.

With the Fed printing money (i.e. ‘quantitative easing’ by the Fed buying treasuries) and doing everything it possibly can to create inflation, people shouldn’t be surprised bond and mortgage interest are more than 6.5% higher than the rate of inflation deflation.

Message to Obama:  heh, the $2 trillion the Treasury has to borrow by selling T bills and bonds to finance the national debt, the $1.8 trillion deficit and Stimulus, only 7% disbursed, ain’t agonna happen without higher interest rates ’cause the foreigners expected to buy ain’t a’ buyin’.

An’ if Bernake keeps a’ buyin’ Ts from the left Treasury pocket ($1 trillion this year) to put in the right Fed pocket ($2 trillion more) it will provoke foreigners ta’ mutiny an’ throw the dollar in the pond, ’cause it won’t be worth nothin’.

Obama: Everyone In The Water Now!!

BLOODHOUND has seen the Google Wave Development preview and predicts bye-bye to existing residential Realtor brokerage practice .

Online sites like Zillow, Trulia, and others do away with the need the public or Realtors  have for local MLS services.  The demise of the MLS for residential home sales has been looming for a couple of years.  All that now ties agents to State and local real estate boards are the form Purchase and Sale Agreement contacts these organizations “approve.”

This is a healthy market development reducing costs for buys,  sellers, and agents.  This may bring an end to 6% commissions as the 6% is actually a cost related problem, not price fixing as has often been alleged.

Let the new Wave Pheonix of real estate practice arise from the ashes of the MLS!

Loopnet commercial real estate listing website conducted a poll of 1500 real estate commercial brokers and investors in the Bay Area asking when the commercial market will recover.  Poll results show 46% say not until 2010.

The number one reason cited by poll respondents for commercial property not selling is lack of available mortgage financing, the second reason,  seller high expectations of value.

There is a lack of commercial mortgage financing.  Commercial agents and investors are in a state of denial.  There will be no significant improvement in the availability of commercial mortgage financing by 2010, or even 2012.  It is going to take 10 years for banks and insurance companies to recover from existing capital losses, unless the PPIP works.  Further, foreign lenders are out of the market.