Let's see how this week goes. We have some positive and some negative right off the bat.
I always like to get the bad news out first. So here goes. One of the nation's largest mortgage insurance companies, United Guaranty, has added the Twin Cities metro area back on to its "declining markets" list. For an area to have that designation means that the property values are dropping fast enough to pose additional risk to lenders and insurers. That means we will see one of two things (or maybe both). First, more expensive mortgage insurance or second, larger down payments being required to get into homes. Either way, this does not help home buyers in the near term. We have already been on the declining markets list for some of the other major insurers and the buying has been fairly strong lately. So this may not be a big deal.
This is an amazing time to buy for truly qualified buyers. Home prices have reset to levels seen in 2002 or 2003. So if there was ever a time to upgrade, now is a great time. In a crisis like this, more wealth will change hands than any other. If you are feeling down about your finances, and who isn't, look at the bright side and realize that steps you take now could be the foundation of your own recovery!
Now, for the good news! The Dow advanced by over 900 points today! Biggest one-day gain ever! more info here Does this mean that we have hit bottom and the recovery has begun? Or does it mean that Columbus Day kept the volume low and tomorrow's normal session will bring renewed volatility? We shall see! Hope for the best!
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