What's going on in Sacramento?
Ron Trujillo and the SBJ (Sacramento Business Journal) broke the unwanted news that according to Bureau of Labor statistics, Sacramento had fallen into the unwanted position of the forth worst job loss rate in the country. It's widely believed Sacramento's unfavorable position is largely due to the erosion of the public sector which finally started its sprint after lagging well behind the private sector decline.
What's going on Nationally?
NAR sent out their rally cry earlier this week at their New Orleans conference to urge the lending industry to loosen up restrictions on "qualified" buyers to help grease the wheel. A similar plea was made to FICO Corp and private lenders to change the credit rules and help improve lending to otherwise qualified borrowers. It's a reasonable plea, but according to many experts, one that looks to fall on deaf ears in the immediate future.
Lawsuits against improper bank foreclosures continue to mount with JP Morgan, PNC Financial and Ally Financial disclosing additional suits today. Some banks including JP Morgan have resumed their foreclosure proceedings after their self-imposed moratorium. But the word at the public pool is, the pool police screwed up and maybe we don't have to get out after all. The bank stallings has allowed would be foreclosed homeowners to stand around with one foot in the water, blocking the way for new swimmers to jump in and get wet. Hey, who can blame them everybody wants to stay a little longer at the pool.
The Fed began its purchasing spree of 10 year bonds, so now let's wait and see.
How do they mix?
It's uncertain how the market will react to QEII and the Fed's bond buying spree, but most continue to believe credit restrictions not rates are the Wade Phillips hindering back the economic explosion we're all waiting for.
Ultimately QE II will inject more capital into the system, but it is unclear whether credit and lending requirements will loosen. Refinance if you can, and look for continued opportunities in the frustrating short sale market. Like your unwanted neighbor, it's not going anywhere soon.
http://www.californiacap.com/
No comments:
Post a Comment