Real Estate Market Update

Yesterday, the Feds cut interest rates by half a point! This has definitely rallied the stock market but will it help the housing market? One of the purposes of this rate cut is to help stablize the housing market. We are currently experiencing record high foreclosure rates and a lot of this is due people's inability to pay their adjustable rate mortgage. The prime rate is directly related to the adjustable mortgages and half a point reduction in their interest rate may help people with their monthly payments. For some, this might be a few hundred dollars in savings. On the down side, the rate cut will affect your high yield savings accounts such is ING. You will probably see about a quarter point reduction in your interest earnings.

As a Realtor, I'm in the marketplace everyday experiencing and dealing with foreclosures, pre-foreclosures, and bank owned properties. I've been working with several people looking to take advantage of these properties because you are getting a very big discount off market value, in some cases as much as 30%. If you are interested in real estate investing, this is the time to start considering buying a pre-foreclosure or bank owned property. If you have any questions about these type of properties, let me know and I'll be happy to answer them for you!

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Oh, and my stock picks of the month are RIMM and MOS.